Finding the Best Home Insurance in Vermont: Top Providers & Tips

Choosing the right homeowners insurance in Vermont is key to protecting your property from financial loss. But with so many insurance companies to pick from, how do you determine which provider offers the best coverage and rates for your needs?

This comprehensive guide examines Vermont’s home insurance market to spotlight the top carriers and provide advice to help you find affordable, quality homeowners insurance.

Overview of Home Insurance in Vermont

• Vermont homeowners pay an average annual premium of $658 for $250,000 in dwelling coverage. This is less than half the national average premium.

• Low rates are partly due to Vermont’s relatively low risk of natural disasters like hurricanes. The state also has low property crime rates.

• Top home insurance providers in Vermont include USAA, Allstate, Travelers, State Farm, and Vermont Mutual.

• Average annual premiums from these top carriers range from $392 to $850 for standard $250,000 dwelling coverage.

• Discounts like bundling and claims-free can reduce premiums. Flood insurance and valuables coverage are common add-ons.

Best Home Insurance Companies in Vermont

Vermont homeowners have access to national insurance carriers as well as local companies based in the state. Here are five top insurers providing coverage based on industry ratings and average annual premiums:

USAA

• Avg Annual Premium: $563
• JD Power Rating: 884/1000
• AM Best Rating: A++ Superior

Best for: Military families due to specialized coverage like uniform insurance

Allstate

• Avg Annual Premium: $589
• JD Power Rating: 882/1000
• AM Best Rating: A+ Superior

Best for: Digital tools like online account management and claims filing

Travelers

• Avg Annual Premium: $662
• JD Power Rating: 794/1000
• AM Best Rating: A++ Superior

Best for: Customized policies with enhancements like identity fraud expense coverage

State Farm

• Avg Annual Premium: $850
• JD Power Rating: 829/1000
• AM Best Rating: A++ Superior

Best for: Local agent availability with 17 offices across Vermont

Vermont Mutual

• Avg Annual Premium: $392
• JD Power Rating: Not Rated
• AM Best Rating: A+ Superior

Best for: Regional knowledge and competitive rates from a Vermont-based insurer

Average Home Insurance Cost in Vermont

The average annual premium for a typical Vermont homeowners insurance policy is $658, according to 2021 data from the National Association of Insurance Commissioners.

That’s over $700 cheaper than the nationwide average homeowners insurance premium of $1,249.

Factors affecting your premiums:

• Location: Rural areas tend to have lower premiums than urban regions. Proximity to fire stations can also lower rates.

• Age of home: Brand new homes qualify for discounts from some insurers. Older homes may cost more to insure.

• Credit score: Vermont allows credit-based insurance scores. Maintaining good credit can earn discounts.

• Claims history: Filing claims raises your premiums. Staying claims-free keeps rates low.

• Deductible amount: Choosing a higher deductible reduces premiums. Just make sure you can afford the out-of-pocket costs if you file a claim.

How to Find Cheap Home Insurance in Vermont

Vermont homeowners already benefit from low average insurance rates. But you may be able to reduce your premiums even more with these money-saving tips:

• Compare quotes from multiple insurers – Rates vary, so shop around for the best deal.

• Ask about discounts – Take advantage of discounts for bundling policies, adding security features, or being claims-free.

• Raise your deductible – Opting for a $2,500 deductible instead of $500 could lower your premiums 20% or more.

• Improve your credit – Maintaining a good credit score can earn you a discounted rate.

• Review coverage annually – Reassessing your policy needs each year can identify opportunities to lower premiums.

• Buy both home and auto insurance from the same company – Most insurers provide a bundling discount of up to 15% for insuring both with them.

Vermont Home Insurance Requirements

Vermont does not mandate homeowners insurance by law. However, most mortgage lenders will require you to buy a homeowners policy as a condition of approving your loan.

Typical mortgage requirements include:

• Dwelling coverage sufficient to rebuild your home.
• Personal property coverage for your belongings.
• Liability insurance to protect you from lawsuits.
• Deductibles low enough for you to afford out-of-pocket costs.

Even without a mortgage, homeowners insurance provides important financial protection that makes it worth buying in most cases.

Top Home Insurance Companies in Vermont

In addition to statewide companies like Allstate and State Farm, Vermont is also home to regional insurance providers.

Some top home insurance companies in Vermont include:

• Vermont Mutual – Headquartered in Montpelier, VT and specializing in Vermont since 1828.

• Acadia Insurance – Based in South Burlington, VT and family-owned since 1972.

• Myers-Stevens & Toohey & Co. – An independent agency with offices across Vermont.

• The Richards Group – Independent agents providing insurance from national companies.

• Palmer Insurance Agency – Family-owned agency based in Rutland, VT.

Shopping around and comparing quotes gives you the best chance at an affordable rate. Local agents familiar with the Vermont market can also help you determine adequate coverage.

Frequently Asked Questions

How much is home insurance in Vermont?

The average Vermont homeowner pays about $658 per year for homeowners insurance covering $250,000 in dwelling coverage. Rates vary based on your location and risk factors.

What is the best home insurance company in Vermont?

Top home insurance companies in Vermont based on industry ratings, premiums, and customer service include USAA, Allstate, Travelers, State Farm, and Vermont Mutual. Compare quotes to find the best fit.

Is home insurance required in Vermont?

Vermont doesn’t legally mandate homeowners insurance. But mortgage lenders will require a home insurance policy as a condition of approving your loan.

What does homeowners insurance cover in Vermont?

A standard policy includes dwelling coverage, personal property coverage, liability insurance, and additional living expenses if your home is uninhabitable after a covered loss. Flood insurance requires a separate policy.

How can I lower my Vermont home insurance costs?

Boost your credit score, raise your deductible, add protective home security features, and compare rates annually to find discounts and the best deal on Vermont homeowners insurance. Bundling auto and home policies can also reduce premiums.

The Bottom Line

Finding cost-effective homeowners insurance in Vermont starts with understanding what leading insurers charge and what coverage options are available. Comparing personalized quotes gives you the power to shop for a competitively priced policy that properly protects your home and belongings.