Best homeowners insurance in Vermont of 2021

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Whether you are buying a historic home in downtown Manchester or a modern dwelling in a Burlington suburb, you need to protect your investment with a homeowners policy. Luckily, Vermont home insurance is relatively affordable, with an average annual premium of $681 for $250,000 in dwelling coverage.

There are dozens of homeowners insurance companies in The Green Mountain State, and they each have upsides and downsides. When shopping for home insurance in Vermont, it is important to consider average rate, coverage options, discounts available, customer service reviews and third-party ratings from reputable research firms.

Best home insurance companies in Vermont

It can be difficult to know which home insurance company one can provide the best coverage for your home. Our top choices provide a great combination of coverages, discounts and price for Vermonters. The table below includes the best home insurance companies in Vermont:

Home insurance company Average annual premium for $250K liability J.D. Power score
Vermont Mutual $378 N/A
Concord Group $472 N/A
State Farm $824 829/1,000
Allstate $503 829/1,000
Union Mutual $674 N/A

Vermont Mutual

Vermont Mutual is a small property insurance company that is headquartered in Montpelier and has been in business for more than 190 years. Vermont Mutual has extremely affordable rates, with an average premium of $378 per year for $250,000 in dwelling coverage. In addition, Vermont Mutual offers a few endorsements for homeowners who want to design a policy that fits their unique needs.

Concord Group

Concord Group is another local insurance company that offers below-average rates for Vermont homeowners. Concord Group stands out for its impressive lineup of add-on coverages, like guaranteed dwelling replacement cost coverage and a green endorsement that pays to rebuild your home with eco-friendly materials. The company also offers discounts for homeowners who want to save even more money on their insurance policy.

State Farm

State Farm is a well-known insurance company that has local offices in 17 Vermont cities. The company has great coverage and discounts, plus helpful online tools, like a calculator that helps you decide how much coverage to buy. The policies are more expensive than average, but the company is rated highly for overall customer satisfaction by J.D. Power and it has excellent financial strength, with an A++ rating from AM Best.

Allstate

Allstate’s home insurance policies are very affordable, with an average rate of $503 per year for $250,000 in dwelling coverage. Vermont homeowners get access to a wide variety of add-on coverages, plus unique extras like a disappearing deductible and a claims-free reward program. Allstate also sells flood insurance and HostAdvantage coverage for Vermonters who rent their home out through platforms like Airbnb.

Union Mutual

Union Mutual is a local insurance company with great customer service, reasonable rates and impressive discounts. Vermonters can take advantage of savings for being a loyal customer, bundling policies, having a permanent generator installed in their home, having a standing seamed roof and owning a home in superior condition. Union Mutual also offers good endorsements, including secondary and seasonal home coverage.

Average cost of homeowners insurance in Vermont

The average cost of homeowners insurance in Vermont is $681 per year. That is significantly cheaper than the United States national average premium of $1,477 per year. Vermont also has the cheapest home insurance rates in New England. For comparison, home insurance in Massachusetts costs an average of $1,258 per year and in New Hampshire it costs an average of $709 per year.

Vermont’s New England neighbors pay higher homeowners premiums because they face a greater risk of hurricane damage. According to the Insurance Information Institute, no Vermont homes face storm surge risk, while nearly 152,000 Massachusetts homes are at risk of a Category 4 hurricane. Vermont also has a lower crime rate than most nearby states.

Home insurance considerations in Vermont

All things considered, Vermont tends to be a safer state for homeowners. However, there are certain losses that Vermont homeowners should be aware of. Choosing the right home insurance coverages can help protect your home against various risks.

Vermont common causes of loss

Most Vermont homeowners only face the most common risks, but climate change is altering the course of Vermont’s rivers, creating a greater flood risk for homeowners in low-lying areas. In 2011, Tropical Storm Irene damaged or destroyed 3,500 Vermont homes, causing more than $700 million in losses.

Besides flood damage, here are some other common risks that Vermont homeowners might face:

  • Fire and smoke damage, especially in the summer months
  • Water damage, which can occur from melting snow and ice
  • Hail and wind storms
  • Snow and ice, which can cause roof and foundation damage

Recommended coverages in Vermont

Standard insurance policies provide the coverages most Vermont homeowners need, including:. Dwelling, personal property, liability and loss of use insurance will be enough coverage to protect your home from most situations. However, Vermont homeowners can benefit from adding some additional coverages to their policy, including:

  • Flood insurance
  • Valuables insurance
  • Identity theft/fraud coverage
  • Personal property replacement cost coverage

Frequently asked questions

What is the best homeowners insurance in Vermont?

Based on our research, Concord Group offers the best combination of homeowners insurance coverages, discounts and affordable rates for Vermonters. Union Mutual also offers great discounts and optional coverages, like guaranteed home replacement cost coverage and equipment breakdown coverage.

How do I get homeowners insurance in Vermont?

Start your home insurance search by requesting quotes from our top four insurers. Most major home insurance companies provide quotes over the phone or online. And several companies operate local offices, where you can sit with an agent and discuss your coverage options.

Is Vermont homeowners insurance expensive?

No. Vermont homeowners pay below-average rates for homeowners insurance. The rate you pay will depend on several factors, including, the location of your home, its age and construction and its proximity to a fire station. Adding optional coverages, like flood insurance or home office coverage, will increase your rate, but provide greater protection.

What should a basic homeowners policy include?

For the best protection, make sure your policy includes dwelling, other structures, liability, loss of use and personal property coverages. You may also want to add a few optional coverages, like personal property replacement cost coverage and identity theft protection, to maximize your protection.

Methodology

Bankrate utilizes Quadrant Information Services to analyze rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on 40-year-old male and female homeowners with a clean claim history, good credit and the following coverage limits:

  • Coverage A, Dwelling: $250,000
  • Coverage B, Other Structures: $25,000
  • Coverage C, Personal Property: $125,000
  • Coverage D, Loss of Use: $50,000
  • Coverage E, Liability: $300,000
  • Coverage F, Medical Payments: $1,000

The homeowners also have a $1,000 deductible and a separate wind and hail deductible (if required).

These are sample rates and should be used for comparative purposes only. Your quotes may be different.

Rates are determined based on 2020 Quadrant Information Services data.