in Vermont, you’ll want to find coverage options for flooding, snow and ice, and wind and hail. Vermont weather can be severe, especially during the winter, so it is important to make sure your home is adequately protected.

Buying a home is a big investment, and you have a lot to consider—including location, the age of the house, and its condition. The same factors that help you choose the perfect home will also impact the cost of your insurance policy.

Finding the right coverage for your new Vermont home can seem overwhelming, and licensed

car

and

home insurance

broker

Jerry

is here to help. Here, Jerry breaks down how to purchase the right homeowners insurance in the Green Mountain State.

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What is homeowners insurance?

Homeowners insurance (or home insurance) protects your house, other structures, and personal items from damage caused by fire, theft, weather, and other perils. It also covers liability if someone is injured on the property.

It is important to make sure you have the right type and amount of insurance for your home. In some cases, this can require an appraisal of your home or a conversation with your insurance broker about how you use your home.

The average cost of homeowners insurance in the United States is $1,387 per year, or $115 per month. In Vermont, the cost is lower than the national average, typically ranging from $700-$900 per year.

Basic components of homeowners insurance

The standard homeowners insurance policy includes the following types of coverage:

Coverage A (Structure): Covers the cost to repair or replace the house itself.

Coverage B (Additional structures): Covers the cost to repair or replace other structures on the property, such as sheds, fences, or unattached garages.

Coverage C (Personal property): Provides coverage for your personal items like furniture, electronics, jewelry, art, and more.

Coverage D (Additional expenses): This is also called loss of use coverage. It pays for you to stay somewhere else when your home is damaged in a way that makes it uninhabitable.

Coverage E (Personal liability): If someone is injured on your property (or by a member of your household) and decides to sue, this will cover court costs.

Another important part of your policy is the deductible, or the amount of money that you are responsible for (out of pocket) after any damage or loss. Choosing a higher deductible often lowers your monthly insurance rate, but it means that you will pay a higher percentage of any covered repairs.

Replacement cost vs. actual cash value

Most current policies in Vermont are based on replacement cost, which means that your insurance will cover the cost of replacing lost or damaged property at the current market value, up to the limit covered by your policy. Some older policies only cover actual cash value (ACV) which factors in depreciation (the value lost over time) and pays you the amount your items were worth at the time of loss.

Perils

A peril is any act or incident that could damage your insured property. Policies that cover “named perils” only insure against those perils specifically written into your policy. Examples of common named perils include:

Fire and smoke damage

Lightning

Wind

Hail

Hurricanes

Impact from vehicles

Theft or vandalism

Riots or civil disturbances

Falling objects

Explosions

With an “open perils” policy (which is less common), all incidents are covered except for those written into the policy as exceptions.

Your policy may not include all the perils listed above. Read your documents carefully so you know exactly what’s covered.

Is homeowners insurance required in Vermont?

Homeowners insurance is not required by law in Vermont, but it is required by most lenders before they will finance your home purchase. In other words, you’ll need to have insurance before you can take out a mortgage.

Even when you’re done paying off your mortgage, it is important to keep your investment protected, so it’s recommended that you have home insurance at all times.

How to get homeowners insurance

When looking for home insurance, you should always start by getting a quote from your current car insurance carrier. Combining your

home and auto

insurance (bundling) can save you money—usually 5-15% or even more!

Before you go with the first quote you find, however, make sure to shop around with several different providers. This process can be time-consuming, but the

Jerry

app can help you get competitive quotes from top providers in less than a minute.

Recommended home insurance coverage in Vermont

Some of the most common perils Vermont residents face include severe snow and ice, windstorms, and water damage.

Keep in mind that the standard homeowners insurance policy does not cover some major sources of damage, namely flooding. To protect your home from external flooding:

Consider taking out a policy from the National Flood Insurance Program (

NFIP

) or a referral.

Separate water backup or sump pump coverage will cover the cost of water damage resulting from an appliance-induced water backup.

An HO-5 or open perils policy will provide coverage for all events except those named as exclusions.

MORE: How to choose the right kind of home insurance for you

What factors affect the cost of insurance in Vermont?

Vermont is ranked among the best in the country for home insurance rates, and you are likely to pay less than you would elsewhere. Typically, you can plan to pay around $700 per year for a house valued at $250,000.

However, personal factors may impact your rate. In most states, your credit score and marital status will help determine your rate, along with the amount of coverage that you choose.

From there, the specifics of the home itself determine your insurance rate. In Vermont, these often include:

Location: Insurers will consider the immediate area you live in and the number and type of claims that come from that area.

Construction: Custom homes and custom building materials often come with a higher insurance premium.

Age of the house: Your rates can vary depending on when the house was built and any upgrades it has had.

Replacement cost: An appraiser can assess the home to estimate the cost of rebuilding if it is destroyed.

Homeowners insurance discounts in Vermont

Insurance providers offer a number of discounts for qualified customers. Check out the table below for examples of common homeowners insurance discounts:

Discount Type	How to get it
Bundling/multi-policy	Combine your home and auto (or other) policies with the same carrier for a good discount.
Protective device	Install smoke detectors, fire alarms, burglar alarms, and other protective devices and qualify for savings.
Claims-free	Your rates may go down when you remain claims-free over time.
Home Renovation Credit	Upgrade plumbing, electric, heating and cooling systems and receive a potential discount.
Roof rating	Make sure your roof is in great repair and has the right surface type and you could save money.
New home/ first-time buyer	Get discounts for when you purchase your first home.

How to save on home and auto insurance

Shopping around for insurance quotes is the best way to ensure you aren’t overpaying for your coverage—and it doesn’t have to take up all your time.

A licensed broker providing end-to-end services,

Jerry

can help you save time and money by showing you quotes from many top providers and helping you make an easy in-app switch.

You can even use Jerry to bundle your

homeowners policy

with your

car insurance

and unlock a great discount!

No matter the situation, you can trust that Jerry’s team of insurance experts will find you the right coverage at the best price.

“It was my first time buying insurance. I expected the worst, to be honest. And then I found
Jerry
. It’s an amazing app that’s super easy to use. It saved me so much time and energy.” —Simon M.

What is not protected by most homeowners insurance?

Most policies do not cover general wear and tear, termite or rodent damage, or damage from poor air quality like smoke or smog. If you use your home to run a business, or if you rent any portion of your house to a tenant, this will also not be covered.

Do I need flood insurance if I live in Vermont?

Flood insurance is often a good idea in areas that experience severe weather. It may be required if you live in an area that has been deemed part of a FEMA-mapped floodplain. You can check to see if your home is in a floodplain area

here.

Save an average of 18% by bundling your home and auto insurance

Bundle your home and auto insurance with Jerry and save!

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