Best Homeowners Insurance in Vermont: Top 5 Insurance Companies to Protect Your Investment

If you are lucky enough to live in Vermont, then it is in your best interest to look after your property investment with a reliable homeowners insurance policy.

Ranked as the second-best state to live in, Vermont boasts stunning nature, beautiful summers, bountiful outdoor activities, and a quality of life that is hard to beat. It is also one of the few parts of the USA not plagued by the constant threat of natural disasters and scorching heat.

That doesn't mean that property investors don't need to be prepared. Flooding is not unheard of, and those long, harsh winters can bring all kinds of issues with them.

Owning a home in Vermont is a big deal, given that affordability is not one of its strong points. If something happens to your beautiful Vermont home or rental property, you need to have reliable coverage to protect your personal finances.

Understanding Homeowners Insurance in Vermont

Protecting your property investment means being prepared for the unexpected. Even in a state as safe as Vermont, things can happen that cause significant property damage and subsequent expenses. Without homeowners insurance, you are left to pick up the pieces (and pay for them) alone.

Your homeowners insurance policy is essentially a safety net between your finances and unforeseen mishaps, challenges, and disasters. It covers the cost of repairs, replacements, and incidental expenses brought about due to extreme weather, system failures, breakdowns, and theft.

Most home insurance policies include basic coverage for personal belongings, dwellings, liability, and temporary living expenses, but there are huge variations in the additional endorsements and coverage limits from policy to policy.

The Average Cost of Vermont Homeowners Insurance

Luckily, the average rates of homeowners insurance in Vermont are comparatively inexpensive against the US national average. Costs vary depending on many factors, but the overall average cost to insure your Vermont property is $815.

One of the major influences on your home insurance quote in Vermont is your credit score. Having bad credit can more than double the expected cost, and having good credit can reduce it even further.

Some of the other things that can move your premium costs up or down include:

• The total value of your personal belongings
• How much coverage you need
• What policy extras are required
• The size and value of your dwelling
• When your property was built
• What upgrades or renovations have been made on the property recently
• The exact location of your property
• What safety features you have installed
• The condition of your dwelling
• Your claims history

What Is the Difference Between Homeowners Insurance and Landlord Insurance?

If you are looking to insure the home you own and live in, then homeowners insurance is generally all you need. Those who own properties but rent them to somebody else most likely require landlord insurance.

What is the difference?

In short, a homeowners insurance policy covers the building and the personal property of the owner. It may cover some extras, but it does not usually include any coverage for the risks involved in renting.

A landlord insurance policy also includes reimbursement of lost rental income, liability coverage for tenant injuries and legal issues, and additional structural coverage.

Anybody who invests in property but intends to rent it to someone else should have landlord insurance rather than (but sometimes as well as) homeowners insurance.

You may need to take out a homeowners insurance policy if your rental property is vacant or in a transitional period between tenants.

How to Choose the Best Homeowners Insurance Policy

When picking a home insurance company and policy, there are a few things to look for: some general and some specific to Vermont residents.

Special Homeowners Insurance Requirement in Vermont

Vermont is not exactly a high-risk state on the grand scale of things, but that doesn't mean extreme weather doesn't pose a threat. Here are two specific insurance requirements for Vermont homeowners.

Flood Insurance

Heavy rainfall has caused flooding in Vermont in the past, and with climate change being what it is, the chances are it will happen again.

Most homeowners insurance policies do not automatically include flood damage insurance, but the company may be able to help you secure it through the National Flood Insurance Program.

Some insurance companies cover dwellings and personal property from flood damage, but it usually comes at an extra cost.

Wind, Hail, Snow, and Frost

Vermont winters are long and often harsh. Low temperatures, high winds, and heavy snowfall can leave people in tricky living situations. Frozen pipes, broken heating systems, blown-off roof materials, damaged siding, and water leaks are some things you need coverage for.

The main thing to look for in your policy is generous repair and replacement limits- preferably ones that ensure full-value replacement cost coverage rather than the depreciated value.

It also helps to have extended dwelling insurance that pays to restore your property to its original condition, even if the costs exceed the policy limit. You can find this as an extra with many insurance companies.

General Things to Consider When Picking a Homeowners Insurance Provider

Here are a few considerations for assessing potential home insurance companies.

• Coverage options: Some companies offer more endorsements and higher coverage limits than others in their standard homeowners insurance policy plans. The range of add-ons also varies, so you must find a company that covers everything you need for as much as you need.
• Costs: Compare policy costs and what they include. A cheap home insurance policy may not provide enough coverage, and you may get more for the same amount of money through a different company.
• Discounts: Most insurance companies offer discounts in one way or another, so find out where you can save the most based on the deals you qualify for.
• Customer satisfaction: You can learn a lot about whether or not a provider is the best home insurance company by what others say. Read reviews on trusted online sites to get a feel for how well the company looks after its clients.

The Five Best Homeowners Insurance Companies in Vermont

Here are the five best Vermont homeowners insurance companies to consider for your property investment protection.

1: State Farm

Our top choice for Vermont homeowners insurance is our top choice for the USA in general. State Farm is hard to beat on coverage and value for money- providing excellent coverage and generous limits at a competitive price.

There are very few insurance companies with the reputation or financial strength of State Farm, so your property investment is in good hands if you choose to insure with them.

State Farm offers many great features and endorsements that suit Vermont homeowners perfectly, and the discounts available make it an even more affordable choice if you qualify.

Coverage and Features

• Sewer, pipe, drain, and water backup coverage
• Flood insurance with the National Flood Insurance Program
• HVAC and water heating system replacements and upgrades
• Generous water damage insurance
• Incidental business insurance
• Dwelling insurance extended to 20% above your policy limits
• Personal liability coverage (including in-home carers)
• Medical payments insurance

Discounts

• Get lower rates through multi-policy bundles.
• Discounted costs may apply to homes with safety features.
• Your insurance costs usually reduce after several years without making a claim.
• Upgrading the utilities in your property could lower policy rates.
• Renovating your home with impact-resistant roof materials can reduce your costs.

2: Vermont Mutual

Vermont Mutual is the smallest insurance company on our list, but that doesn't make it less of a contender. It may only serve a handful of states (Vermont included), but it is highly rated with AM Best and the Better Business Bureau.

After more than 200 years in business, Vermont Mutual has perfected insurance coverage, and the options for property owners in the area are excellent.

If you are not yet convinced, you should also know that a homeowners insurance policy with Vermont Mutual is way below the average cost, meaning you can protect your investment without breaking the bank.

Coverage and Features

• All the standard coverage you expect from a Vermont homeowners insurance policy
• Appliance breakdown cover
• Water backup insurance
• Post-storm debris removal
• Identity theft protection
• Underground service line insurance
• Enhanced coverage for jewelry, art, and other valuables

Discounts

• You can save 10% by paying in full.
• Vermont Mutual costs can drop by up to 25% when bundling your home and auto insurance.
• Discounts go to clients who remain claim-free for a set time.
• Other discounts and deals may be available through a local insurance agent.

3: Allstate

Allstate is the cheapest of the big-name homeowners insurance providers in Vermont, so it is an excellent choice for people who want the reliability of a large and powerful company with the budget-friendly premiums of a local provider.

There isn't much you can't cover with an Allstate insurance policy, and the many optional coverage extras help you personalize your plan to suit your Vermont property.

Another reason to love Allstate is the unique policy options you don't often see from most homeowners insurance plans, including HostAdvantage insurance for short-term rentals and yard and garden coverage for your landscaping.

Coverage and Features

• Yard and garden insurance
• Fallen tree removal
• Brand-new replacements for stolen or damaged items
• Cash payments for damaged items (to the depreciated value)
• Short-term rental insurance with HostAdvantage
• Electronic data recovery
• Extended replacement cost coverage
• Sewer line and pump coverage
• Ordinance insurance
• Incidental business coverage
• Water backup insurance
• Eco-friendly building materials bonus

Discounts

• Save up to 25% by bundling your home and car insurance through Allstate.
• Pay in full or through Autopay enrolment to earn cheaper rates.
• You may qualify for lower rates on your insurance premiums if you have a history of paying bills on time.
• Renewing your insurance policy for another year before it expires often earns you a discount.
• Lower quotes are usually given to new buyers and owners of newly built properties.
• The presence of some home safety features could reduce your Allstate insurance costs.
• You may pay up to 20% less for insurance if you join Allstate with a clean recent claims history from your previous insurance provider.
• $100 comes off your deductible each year for up to five years if you don't make any claims.

4: Liberty Mutual

Liberty Mutual is one of the largest insurance companies in the US. It covers all kinds of insurance policies, including robust and comprehensive options for homeowners.

Service is personal and efficient, and the various insurance endorsements and add-ons make it easy to customize your coverage to meet your every need.

To Vermont residents, Liberty Mutual offers generous discounts and deals on high-level coverage for every incident and event- including options for wind, hail, and flood insurance.

Coverage and Features

• Water backup and overflow/pump failure coverage
• Extended replacement cost coverage above the policy limit if construction costs rise
• Brand-new item replacement for stolen or damaged property
• Ordinance and law insurance
• Inflation protection
• Deductible-free insurance for stolen jewelry
• Identity theft coverage

Discounts

• A bundling discount is available when you combine your home and car insurance policies.
• Your rates may be lower if you haven't filed any claims with your previous insurance provider in the last five years.
• After three years claim-free with Liberty Mutual, you can expect a drop in premium costs.
• Newly purchased, newly built, and recently renovated properties are usually cheaper to insure. The same applies if you have a new roof.
• Buying your policy online, paying through Autopay, and signing up for paperless billing can save you money.
• Smart home devices and systems that help detect and prevent theft, fire, and water damage can also reduce your premiums.

5: Chubb

If you own a high-end Vermont property, want the best coverage there is, and don't mind paying a little more in exchange, then Chubb is the one to beat. Chubb is one of the best homeowners insurance providers in the country- offering excellent policies, generous limits, and paying out well above the usual amounts for property repairs and replacement.

The company also provides various additional services that boost its client satisfaction ratings and make it the go-to choice for high-value property owners across the USA.

Coverage and Features

• Weather risk assessments and home monitoring
• High-limit property insurance
• Unlimited rebuild coverage
• Tree and debris removal
• Cash settlement to your property's value if you choose not to rebuild
• Excellent liability coverage
• Flood insurance is part of your standard policy

Discounts

• Lower rates usually apply to new and recently renovated properties.
• Discounts are available if your home has a monitored security system.
• Reduce costs by bundling your home insurance and car insurance.
• Fire-protective materials and systems can reduce your costs.
• A 10% discount applies after three years claim-free.

Other Homeowners Insurance Companies to Consider

• USAA (for military families and veterans)
• Nationwide
• Amica
• Concord Group
• Travelers
• Farmers

Conclusion

No matter where you live, unexpected challenges can arise, and without homeowners insurance, they can leave you in a difficult spot.

Life in the Green Mountain State is glorious- if a little costly- so you don't want to put your home and finances at risk and leave yourself unable to repair damage or replace belongings.

The five homeowners insurance companies on our list operate in Vermont to offer people robust, reliable, and reasonably priced coverage for their property investments.

Always compare rates and policy details from multiple companies to find the best option for you and your home.