Best homeowners insurance companies in Vermont for 2024

Compare the best homeowners insurance companies in Vermont

It may be difficult to know which home insurance company could provide the best coverage for your home. Our top choices — USAA, Allstate, State Farm, Travelers and Vermont Mutual — provide a strong combination of coverage types, discounts and low average premiums for Vermonters. We also looked at third-party rankings from J.D. Power for customer satisfaction and AM Best for financial strength. Most of our chosen companies came in with average rates that are below the Vermont annual average of $806 for $300K in dwelling coverage. Our sample average rates were pulled from data supplied by Quadrant Information Services. The table below includes our picks for the best Vermont homeowners insurance companies.

The top 5 home insurance companies in Vermont

Additional Vermont home insurance companies to consider

Cheapest home insurance companies in Vermont

 For homeowners with a tighter budget — or those who would just prefer to spend less on their home insurance coverage — Bankrate has reviewed the data from Quadrant Information Services and collated a list of the Vermont providers with the cheapest home insurance rates on average. All but two of the providers on our list offer average rates below the state average. In our research, we did not account for discounts, so keep in mind that your discount eligibility can help drive your insurance premium even lower.

How to get cheap Vermont home insurance

Even with low average rates, many Vermonters may be looking for ways to save on their home insurance policy. These strategies may help you find lower rates:

Best home insurance discounts in Vermont

Another way to save money on your Vermont homeowners insurance may be through the use of discounts. Most insurers offer at least a few of these to policyholders, and it's one of the reasons why it may be a good idea to review your policy annually. Here are some of the common discounts you may see across multiple carriers:

How to save on home insurance policy renewals in Vermont

By the time your home insurance policy is up for renewal, it is likely that your premium will change. According to Bankrate’s analysis of rate data, the national average cost of home insurance rose considerably from 2023 to 2024. However, there are a couple of strategies you can implement to help avoid a premium increase when it is time to renew your policy.

• Tell your insurer about home improvements: Don’t keep any home fortification projects to yourself. If you’ve installed a new roof or made your home more storm-resistant, be sure to let your insurance company know as it might get you a better rate.
• Ask about discounts: Maybe you changed jobs, increased your credit score or installed a new security system since you first signed up for your policy. Be sure to ask a company representative about any potential discounts you may have missed the first time around. For example, if you’ve had your policy for several years, you might now qualify for a customer loyalty discount.
• Review your policy limits: If your belongings are insured for their actual cash value (as opposed to their replacement cost value), you may need to factor depreciation into your policy limits. For example, if the television you bought a couple of years ago is no longer worth what you paid for it, you might want to consider that when setting your personal property coverage limit.

How much is home insurance in Vermont?

The average cost of homeowners insurance in Vermont is $806 per year for $300K in dwelling coverage. That is 65 percent less than the national average of $2,304. Vermont also has some of the cheapest average home insurance rates in New England. For comparison, home insurance in Massachusetts costs an average of $1,671 per year, and in New Hampshire, it costs an average of $980 per year.

Some of Vermont’s New England neighbors may pay higher homeowners insurance 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 many nearby states.

Your home insurance rates may vary from these averages based on your personal rating factors and the details of your home. The amount of dwelling coverage you have also causes rates to fluctuate.

Vermont homeowners insurance rates by city

To help you get a better understanding of what Vermont home insurance costs in your ZIP code, Bankrate created the interactive map below. You can look up ZIP codes for your neighborhood and its surrounding areas to see how home insurance costs vary across the state.

What does home insurance cover in Vermont?

Home insurance offers valuable financial protection, but it does not cover everything under the sun. The most common type of home insurance policy is a form HO-3. This type of home insurance policy provides coverage for your home’s physical structure, other structures on your property (like a fence or gazebo) and your physical belongings. It also provides liability insurance in case someone is injured on your property and medical payments coverage. If you need to relocate from your home temporarily due to a covered peril making your home uninhabitable, an HO-3 insurance policy also provides additional living expenses coverage.

With home insurance, it is not only important to know what is protected, you must also understand how it is protected. With the HO-3 home insurance policy, your home’s physical structure and other structures on your property are covered on an open-peril basis. This means that they are protected from any peril except the ones that are specifically excluded from your policy. Your personal property, on the other hand, is protected on a named-peril basis. This means you can only file a claim for your belongings if they are damaged by something that is listed in your home insurance policy.

Below, we’ve listed some of the most common perils home insurance covers, according to the Insurance Information Institute (Triple-I):

• Wind and hail: Wind and hail can wreak havoc on your home’s roof, compromising its structural integrity. Not only, but wind and hail could also cause your home to spring a leak.
• Water damage and freezing: Vermont winters are notoriously cold, with temperatures known to dip below zero. If a pipe freezes and bursts, your home insurance policy can help pay for the repairs.
• Fire and lightning: Fire and lightning claims accounted for nearly 25 percent of all home insurance claims in 2021, per Triple-I.

Additional home insurance coverage types in Vermont

In addition to the standard coverage types included in a homeowners insurance policy, some homeowners in Vermont may want additional coverage. Available as endorsements or standalone policies, these add-ons may offer coverage in areas not included in a standard homeowners insurance policy, or they may offer enhanced coverage for existing coverage types. Common endorsements for Vermont homeowners include:

• Flood insurance: Flood insurance is not included in a standard home insurance policy and may not be available from all carriers. If you cannot find a provider, you may be able to purchase a policy from FEMA’s National Flood Insurance Program.
• Valuables insurance: While most policies will include coverage for personal belongings, there are limits to what they will cover. Without adequate coverage, you could be left with the bill should you ever experience damages or a loss. If you have expensive valuables, you may want to talk to your agent about what coverage is right for you.
• Identity theft/fraud coverage: As the world continues to go digital, identity theft and fraud protection may be more important than ever. Thankfully, many providers offer this coverage to help restore your identity after a breach.
• Personal property replacement cost coverage: The cost of a new television today is likely a lot more than what you could sell your existing one for. This coverage type is designed to ensure your belongings are covered at today's market value, rather than their depreciated value.

Common Vermont home insurance problems

From July 10 to 11, 2023, Vermont experienced a historic level of flooding. However, according to a spokesperson from the Vermont Department of Financial Regulation, only a small percentage of Vermonters had flood insurance to help cover the damage.

Most states require potential home sellers to disclose flood risk during a trial estate transaction — but not Vermont. With climate change creating more extreme weather, Vermont homeowners could end up feeling the financial sting if another flood occurs.

Frequently asked questions

Additional profiles:

• Coverage A, Dwelling: $150,000, $350,000, $450,000, $750,000
• Coverage B, Other Structures: $15,000, $35,000, $45,000, &75,000
• Coverage C, Personal Property: $75,000, $175,000, $225,000, $375,000
• Coverage D, Loss of Use: $30,000, $70,000, $90,000, $150,000
• Coverage E, Liability: $500,000
• Coverage F, Medical Payments: $1,000

Bankrate Scores 

Our Bankrate Score considers variables our insurance editorial team determined impacts policyholders’ experiences with an insurance company. These rating factors include a robust assessment of each company’s product availability, financial strength ratings, online capabilities and customer and claims support accessibility. Each factor was added to a category, and these categories were weighted in a tiered approach to analyze how companies perform in key customer-impacting categories.

Each category was assigned a metric to determine performance, and the weighted sum adds up to a company’s total Bankrate Score — out of 5 points. Our scoring model provides a comprehensive view, indicating when companies excel across several key areas and highlighting where they fall short.