Vermont Homeowners Insurance

Homeowners Insurance in Vermont: Complete Consumer Guide

Are you a new Vermont resident or are you planning to become one? We have some interesting facts about this state. Vermont is known for its ski slopes and maple syrup, its forests are beautiful and tourists flock here in fall. National parks and museums abound here too. Vermont’s nickname is the Green Mountain State, mainly because vert mont means “green mountain.” Its major industries include manufacturing, agriculture, energy and technology. Ben & Jerry’s ice cream and its museum are located here. Presidents Calvin Coolidge and Chester A. Arthur both hail from Vermont and so does Bernie Sanders. Vermont is sparsely populated and is the second to last least populated state in the United States. It’s also a very progressive state. You won’t see any billboards in Vermont, where this form of advertising is illegal. The area code 802 is the only area code in Vermont.

Types of Homeowners Insurance policies in Vermont

There are several standard policies that apply to homeowners and owners of condominium units. Here they are:

HO-1 is The Basic Coverage Form, which provides minimal coverage. Some insurers do not off it. It applies to dwelling and personal property and insures against fire, lightning, vandalism and malicious mischief, and extended coverage perils, including riots, explosions, vehicles (damage inflicted by a vehicle to the dwelling), civil commotion, smoke, hail, aircraft, windstorm and breakage of glass, which is part of a building.

HO-2 is The Broad Coverage Form, which applies to both dwelling and personal property and includes everything in HO-1 as well as as: falling objects, weight of snow, sleet and ice, damage to water heating systems, volcanic eruption, damage from plumbing or appliances, freezing of plumbing or appliances, damage from artificially generated currents. Some coverage only applies if the damage is sudden and accidental not due to deterioration or negligence in maintenance.

HO-3 is The Special Coverage Form has the most extensive coverage of all the forms. It has an “open perils” policy, which means that if it’s not specifically excluded in your declarations page, you are covered. These exclusions include flood and earthquake, war or nuclear accident. Personal property is protected in the same way as it is in the broad form.

HO-6 is The Condominium Form, which provides broad form coverage for personal property. The amount of coverage for structural coverage varies according to the policy and the unit. It’s important to speak with a trusted agent about these specifics if you are insuring a condo unit.

 

What factors affect rates on homeowners insurance in Vermont?

Factors that greatly affect the rate of homeowners insurance include construction type, often how flame resistant the structure is; the location and claims history in the area; the age of the home and the upgrades that went into it; the replacement cost of rebuilding that house; swimming pools and trampolines; and home businesses that have expensive equipment and inventory. Snow, the weight of it and melting snow, are factors that can affect roof conditions and other parts of the home. A poorly maintained roof will not be fully covered in an insurance claim so it’s important to properly upkeep your home in Vermont.

Top 5 disasters in the State of Vermont

Vermont federally declared Severe Storms as the most common disaster, with 25 counts since 1953, followed by Flood, Biological, Drought, and Hurricane disasters. Here are the top 5 federally declared disasters in the state of Vermont:

Rank	Declaration Title	Disaster Number
1	Severe Storms	25
2	Flood	16
3	Biological	2
4	Drought	2
5	Hurricane	1

Source: Federal Emergency Management Agency (FEMA)

 

How much is homeowners insurance in Vermont?

The average homeowners insurance policy costs $1,004 a year. But many factors affect a rate so yours may be much lower or much higher.

Source: The average cost of homeowners insurance by state, Business Insider.

Crime Rate: Is Vermont a safe state?

2019 Crime in Vermont	Crime Number	Crime Rate*
Property Crime	8,888	1,424.4
Burglary	1,275	204.3
Larceny-Theft	7,315	1,172.3

*Rate per 100,000 inhabitants

Safest Cities in Vermont by Property Crime*

• Milton, VT has a population of 11,064 with a Property Crime rate of 10.6 per 1k. The city average home value is approximately $303,752.
• Essex, VT has a population of 22,213 with a Property Crime rate of 12.9 per 1k. The average home value there is about $327,348.
• Colchester, VT came in third as the safest city in the state of Vermont and has a population of 17,548 with a Property Crime rate of 13.3 per 1k. Its home value averaged at about $342,773.
• Williston, VT has a population of 10,026 with a Property Crime rate of 20.4 per 1k. Its average home value is $376,896.
• Burlington, VT has a population of 42,958 with a Property Crime rate of 25.8 per 1k. The city home value averaged $354,623.

*Based on FBI Uniform Crime Reporting 2019, some cities have been eliminated because of changes in the state/local agency's reporting practices and cities with populations under 10,000. Zillow’s State/Cities average home value for a single family home or a condo as of Sept. 2020.

Compare Home Insurance Rates in Vermont

Top homeowners insurance companies in Vermont

Allstate had a 3/5 score from J.D. Power and an A+ from A.M Best for financial strength, an important consideration in choosing a home insurer.

American Family had a 3/5 score from J.D. Power, a trusted source.

Vermont Home Insurance FAQs

What is the average deductible for home insurance?

Deductibles vary according to the home that needs based on what it costs to rebuild it. Most homeowners insurance deductibles are a minimum of $500, sometimes $1,000. Usually, the deductible ranges from 5% to 20% of replacement cost of the home’s structure.

What do I need when buying homeowner insurance for the first-time?

You’ll need to know what materials your home is made of, how much your personal belongings amount to and if you’ll need additional riders to cover exceptionally expensive items. You’ll also need details about the age of the home and the roof as well as information on upgrades to any systems or pipes. What types of renovations have you done? For more on what you need to get a homeowners insurance quote visit here.