The Best Cheap Vermont Homeowners Insurance for 2024

Purchasing homeowners insurance may not be exciting, but it is important. A good homeowners policy can protect you from financial hardship if your home is damaged or destroyed. Here, we'll identify the best homeowners insurance in Vermont and direct you toward the cheapest policies in the state.

• Cheapest overall for Vermont: Vermont Mutual
• Cheapest for new home construction: Vermont Mutual
• Cheapest for older homes: Vermont Mutual
• Cheapest for homeowners who have filed a claim: Vermont Mutual

Cheapest overall for Vermont

For cheap homeowners insurance in Vermont, these four insurers offer the lowest overall rates:

• Vermont Mutual, with an average annual rate of $379
• Auto Owners, coming in with an average rate of $524
• Frankenmuth, with an average annual rate of $583
• Allstate, also competitive, with an average rate of $590

Cheapest for new home construction

Moving into a new home is special. And as a bonus, new homes are typically less expensive to insure. Insurance companies know that all the components in the house are brand-spankin' new and unlikely to break down any time soon. That means fewer wet basements and broken water pipes. The savings get passed on to the homeowner through lower insurance premiums. These Vermont home insurance providers offer the lowest rates for newly built homes:

• Vermont Mutual, offering an average annual rate of $292
• USAA, with an average annual rate of $381
• Auto Owners, with an average annual rate of $405
• Frankenmuth, coming in with an average annual rate of $407

Cheapest for older homes

Older homes are often amazing, with details and features that can't be found anywhere else. That said, older homes are also prone to particular problems. Issues like shifting foundations, mold, and dry rot can lead to insurance claims. And that's why insurers tend to charge more to insure classic homes. In Vermont, these four companies offer the lowest rates for older homes:

• Vermont Mutual, with an average annual rate of $386
• Auto Owners, offering an average annual rate of $499
• Allstate, with an average annual rate of $601
• Union Mutual, offering a relatively competitive rate of $640

Cheapest when you've made a claim

For all but the wealthiest among us, living without homeowners insurance would represent a huge risk. However, homeowners who make a claim can expect their premiums to increase, particularly if it was a major claim. Premium increases don't last forever, but it's important to know that it can happen. For a Vermont homeowner who has made a claim, these four insurers attempt to keep rates low -- even after a submitted claim:

• Vermont Mutual, offering a post-claim rate of $421
• Frankenmuth, coming in with an average annual rate of $570
• Auto Owners, offering an average annual rate of $578
• Union Mutual, with an average annual rate of $640

Average home insurance cost in Vermont compared to the national average

At an average statewide cost of $819, Vermonters pay 54% less than the average national rate of $1,788.

Vermont homeowners insurance overview

The best homeowners insurance in Vermont can be described like this: a high level of coverage at a low price. While the concept seems simple, the tricky part is getting bombarded with unfamiliar terms. Here's a breakdown of what some of those terms mean.

Different types of homeowners coverage

Policy types range from basic to coverage with all the bells and whistles. The best homeowners insurance companies offer a full menu of coverage options. Choosing the right options comes down to deciding what needs to be protected. For example, if a homeowner has a fully outfitted art shed on the property, they'll need to make sure their policy is comprehensive enough to cover its loss. The same is true for things like high-end appliances and other expensive home upgrades.

Level of coverage

The most basic policies are the least expensive. The problem with a barebones policy is that it may not fully cover losses. It's a good idea to fully consider the level of coverage needed before shopping for the best homeowners insurance in Vermont.

Amount of deductible

Any time a homeowner makes a claim, they pay an insurance deductible. A deductible is an amount the homeowner must pay toward a repair or replacement. Let's say there's a storm in the area, and a homeowner's roof ends up a few blocks away. If the cost of replacing the roof comes to $18,000 and the homeowner has a $1,000 deductible, they're responsible for paying the first $1,000 toward repairs. The insurance company then picks up the remaining $17,000. The lower the deductible, the higher their policy premium will be. Choosing a higher deductible can reduce the cost of the policy.

Potential discounts

One of the smartest ways to land cheap homeowners insurance in Vermont is to ask about policy discounts. Nearly all insurers offer a list of home insurance discounts. These discounts cover everything from whether the home has a security system to whether the homeowner bundles home and auto coverage.

What are the most common homeowners insurance claims in Vermont?

Recognizing the most common Vermont home insurance claims can help homeowners as they shop for a policy that fits their needs.

Wind and hail

Wind and hail are the most frequent causes of insurance claims across the U.S. Within moments, hail can damage everything from siding to roofs.

Lightning strikes and fire

Nationwide, lightning strikes are among the most common claims. Vermont is no exception. Whether a fire is started by nature or a human accident, it's important to have coverage when this peril strikes.

Water damage

It typically rains more than the national average in Vermont. Rain, of course, can lead to flooded basements, leaking roofs, and a resulting loss of personal property.

Homeowners insurance coverage options and discounts in Vermont

The very best homeowners insurance in Vermont provides all the coverage people need at the lowest possible price. The fastest, easiest way to land a low price is to take advantage of discounts. Here, we look at coverage options and illustrate how discounts can reduce premiums.

Coverage options

Here's a rundown of the eight types of homeowners insurance:

• One covers renters.
• One covers mobile homes only.
• The other six range from basic coverage to more extensive protection.

A comprehensive policy may also include coverage for things like expensive add-ons, upgraded floors, and expensively outfitted theater rooms.

Discount options

One important factor in finding cheap insurance in Vermont is claiming as many discounts as possible. Here are some of the most common:

• Installing a burglar alarm saves around 8%.
• Upgrading the electrical system can save about 6%.
• A roof upgrade saves approximately 9%.
• Bundling home and auto coverage can save up to 18%.

Five cheapest cities in Vermont for homeowners insurance

When insurance companies determine rates, they take into account many factors, including:

• Area crime rate
• Value of surrounding property
• Cost to rebuild
• How far a property is located from a fire station

The five cheapest cities in Vermont for homeowners insurance are:

Five most expensive cities in Vermont for homeowners insurance

And here are the five most expensive cities:

Vermont's rates are often far below those found in other states, making it easier for the average homeowner to purchase the level of coverage they need and desire.