6 Best Homeowners Insurance Companies in Vermont in 2023
Homeownership remains a quintessential American Dream, and with it comes the responsibility of securing homeowners insurance to protect your greatest financial asset—your home. Vermont homeowners can take comfort in the state's affordable insurance rates, the lowest in New England.
At PropertyNest, we aim to alleviate the stress of choosing the right homeowners insurance policy for you and your family. Our comprehensive research results will guide you in selecting the best insurer in Vermont, ensuring that your policy meets your unique needs and safeguards your home.
The Best Homeowners Insurance Companies in Vermont
- State Farm: Best for Endorsements
- Liberty Mutual: Best for Discounts
- Allstate: Best for the Most Affordable Coverage
- Travelers: Most Experienced
- Vermont Mutual: Best In-state Homeowners Insurance Company
- Concord Group Insurance: Best for Customer Service
State Farm: Best for Endorsements
While being one of the best-known insurers in the United States for its bundle discounts and competitive rates, State Farm stands out in Vermont for its endorsements (options) that can be added to the base homeowners policy.
The annual premium for State Farm’s homeowners insurance policy in Vermont is slightly above the state’s average premium.
State Farm Homeowners Insurance Coverage
- Water backup
- Earthquake protection
- Identity theft restoration
- Loss assessment for homes under an HOA
- Energy efficiency upgrades
- Home systems protection
- Service line coverage
Working with a local State Farm agent, additional endorsements such as home rental coverage, vacant home coverage, off-premises structures coverage, and business liability coverage can be added.
State Farm’s base policy includes extra coverage for silverware, firearms, and fire department service fees.
Read a full State Farm homeowners insurance review.
| J.D. Power (out of 1,000) | 829 |
|---|---|
| A.M. Best - Financial Strength Rating | A++ |
| BBB | A+ |
| NAIC Complaint Index | 1.77 |
Liberty Mutual: Best for Discounts
Like State Farm, Liberty Mutual is one of the best-known insurers in the U.S.
The company has strong financial ratings and offers various coverage options in all 50 states.
Although Liberty Mutual’s premiums for its base homeowners policy are higher than the state average, the final cost can be significantly lower based on the company's numerous discounts.
Liberty Mutual Homeowners Insurance Discounts
Coverage and discounts vary by state. However, we found that Liberty Mutual’s discounts were extensive in Vermont. Those discounts include savings for homeowners who:
- Have a home security system, fire alarm system, fire sprinklers, or water detection equipment
- Fully insure their home up to its estimated value
- Have a claims-free history
- Bundle their homeowners and car insurance
The company also gives a 10% discount for signing up for coverage on their website.
Read a full Liberty Mutual homeowners insurance review.
| J.D. Power (out of 1,000) | 805 |
|---|---|
| A.M. Best - Financial Strength Rating | A |
| BBB | A+ |
| NAIC Complaint Index | 2.37 |
Allstate: Best for the Most Affordable Coverage
Shoppers for homeowners insurance in Vermont will find Allstate the most affordable of all the insurers that provide coverage nationwide.
Their annual premium is higher than two smaller Vermont-based companies with low premiums, Vermont Mutual and Concord. Still, they are very competitive with larger carriers like State Farm and Farmers.
Allstate Homeowners Insurance Discounts
We found Allstate to have the lowest premiums in Vermont after its discounts are considered.
Those discounts include the following:
- Bundling home and auto policies: 25%
- New customer discount: 10% off when you switch to Allstate
- Loyalty discount: 10% off for every year you continue your policy
- Early signing discount: 10% off premium when you sign up for a new policy more than seven days before your current policy expires
Allstate agents in Vermont can help policyholders sign up for optional flood protection through its partnership with NFIP (National Flood Insurance Program).
Read a full Allstate Homeowners insurance review.
| J.D. Power (out of 1,000) | 815 |
|---|---|
| A.M. Best - Financial Strength Rating | A+ |
| NAIC Complaint Index | 2.05 |
| BBB | A- |
Travelers: Most Experienced
Some people purchasing homeowners insurance value longevity and experience more than they do price.
Therefore, we included this category in our comparison and put Travelers with over 160 years of experience at the top.
Travelers policies also include more personal property coverage options than the other insurers in this review.
Travelers Homeowners Insurance Discounts
In addition to the standard homeowners insurance discounts offered by the companies reviewed (alarm system, sprinkler system, etc.), Travelers offers a Decreasing Deductible benefit.
This benefit lowers an insured’s out-of-pocket expenses if they file a claim by crediting the policyholder’s account $100 towards their deductible each year they don’t file a claim.
There is no cap on the credit, so an insured could conceivably pay $0 on a claim.
Travelers offers a range of deductibles for Vermont homeowners, ranging from $1,000 to $50,000.
A Travelers homeowners insurance policy also offers an add-on for equipment breakdown, covering repairs or replacement of appliances (refrigerator, dishwasher, etc.) and systems (electrical, HVAC, etc.) after an electrical or mechanical failure.
| J.D. Power (out of 1,000) | 794 |
|---|---|
| A.M. Best - Financial Strength Rating | A++ |
| BBB | A |
| NAIC Complaint Index | 3.88 |
Vermont Mutual: Best In-state Homeowners Insurance Company
For Vermont homeowners insurance policyholders, Vermont Mutual takes first place for the lowest premium for its basic policy, bearing in mind that other insurers may cost less after discounts.
The company offers a fair number of endorsements, including the home business endorsement that lets policyholders insure a business being run from home on their homeowners policy instead of needing a separate commercial insurance policy.
To get a quote from Vermont Mutual, call a local agent. No online quotes are available.
Vermont Mutual has developed a loyal customer base in the state by helping regional charities through its Charitable Giving Fund.
Unlike many large insurers conducting an increasing amount of business online instead of through local agents, Vermont Mutual’s advertising strongly urges state residents to support their local Independent Insurance Agency.
Vermont Mutual Homeowners Insurance Coverage
Vermont Mutual also offers home systems protection in their homeowners policy, which many families insured by other companies purchase separately from home warranty companies.
Vermont Mutual’s home systems protection pays policyholders up to $50,000 in coverage for damage caused by electrical or mechanical breakdown to systems such as:
- Laundry appliances
- Computers, laptops, and tablets
- Water heaters
- Well pumps
- Pool and spa pumps
- Solar, wind, and geothermal energy equipment
Concord Group Insurance: Best for Customer Service
In addition to having the second lowest rates in Vermont and being based in the Green Mountain state, Concord rates highest in customer service.
Concord offers guaranteed home replacement costs, even if your coverage limit is too low.
It also provides law or ordinance coverage, which pays you to repair or rebuild your home to meet local building codes.
| Company | PropertyNest Rating | J.D. Power (out of 1,000) | A.M Best Rating | BBB Rating |
|---|---|---|---|---|
| Lemonade | 5.0 | 853 | Not Rated | B+ |
| Allstate | 5.0 | 837 | A+ | A- |
| Liberty Mutual | 4.5 | 834 | A | A+ |
| State Farm | 4.5 | 836 | A++ | A+ |
| USAA | 4.5 | 886 | A++ | A+ |
| Erie Insurance | 4.5 | 851* | A+ | A+ |
| Travelers | 4.0 | 801 | A++ | A |
| Amica | 4.0 | 854* | A+ | A+ |
| Nationwide | 4.0 | 859 | A+ | A+ |
| Jetty | 4.0 | Not Rated | A | A+ |
Is Homeowner’s Insurance Mandatory in Vermont?
You’ll find no law in Vermont, or any other state, that mandates you insure your home.
However, no commercial lender will allow you to close on a home purchase without adequate homeowners insurance.
If you own your home outright, carrying homeowner’s coverage is entirely your decision.
What is Included in a Vermont Homeowners Insurance Policy?
Six types of coverage keep your home fully protected from unforeseen events:
Dwelling coverage
Dwelling coverage covers the structure of your home if it needs to be repaired or rebuilt after a covered peril.
For example, your insurer will pay up to your policy’s dwelling limit if a fire damages your home.
The limit for dwelling coverage typically equals 100% or more of your home’s estimated value to return it to its original condition.
Other structures coverage covers repairing or rebuilding any external structures that aren’t part of your home’s dwelling.
This could include things like a backyard shed or a fence. The coverage limit for other structures should be at least 10% of your dwelling coverage.
Personal property coverage
Personal property coverage covers your personal belongings that are lost, stolen, damaged, ruined, or vandalized.
The insurer typically pays 60% to 75% of the replacement cost or depreciated value. Replacement cost coverage does cost extra, which is a good option if you have older items.
| Type | Items | Coverage |
|---|---|---|
| Cash or Other Forms of Currency | Bank notes, bullions, gold or silver (non-jewelry), coins, medals, smart cards, stored value cards. | Most renters insurance policies will only cover up to $200 in stolen cash. |
| Electronic Equipment | Phones (iPhones, Androids, etc.), computers, laptops, iPads, earbuds, smart watches, TV sets, gaming systems, Alexa or Google home devices, etc. | Standard renters insurance policies cover the loss or damage of electronic devices. |
| Clothing | Designer purse/handbags, shoes, jewelry, designer watches | Standard renters policies cover your personal clothing or designer handbags etc. |
| Power Tools | Drills & drivers, saws. | Covered under the personal property coverage. |
| Kitchen appliances | Refrigerators, microwaves, blenders, electric mixers, ice makers, coffee machines, and other appliances. | Renters insurance covers personal appliances if they are damaged, stolen, or destroyed by a covered peril. |
| Prescription drugs | Will not cover stolen prescription drugs. | |
| Personal information | Bank accounts, identity information stolen from documents, or stolen personal equipment. | Most companies do not include identity theft as a covered peril in a standard renters insurance policy. |
| Firearms | Pistols, rifles | Legal firearms are covered under personal property coverage. |
Personal liability coverage
Personal liability coverage pays for legal fees or medical costs if you’re responsible for an accident or injury to someone visiting your property.
The coverage is customizable, but the limit is usually $100,000 to $300,000. Insurers recommend increasing it if you have frequent visitors.
Medical payments to others coverage
Medical payments to others coverage pay for medical costs if someone is injured on your property, and you are not responsible.
For example, if a guest cuts themselves in your kitchen and you file a claim, your insurer could pay an amount up to the policy’s limits, typically around $1,000 to $5,000.
Loss of use coverage
Loss of use coverage covers you if your home suffers damage and your insurer deems it unlivable until it’s repaired or rebuilt.
Loss of use pays your additional living expenses, such as hotel and meal costs, while you're away from home.
Limits for this coverage are usually 10% to 20% of the dwelling amount.
Factors to Consider Before Buying Homeowners Insurance
Several factors may affect your coverage and premiums, including:
Home value
Home value before purchasing your home in Vermont, consider hiring a professional appraiser to determine your home’s value.
This will help you get an accurate estimate of how much dwelling coverage you need.
If your dwelling coverage exceeds your home’s value, you may be forced to pay thousands of dollars out-of-pocket related to a claim or live with unfinished repairs.
Endorsements
Endorsements, also known as options, add-ons, or riders, provide additional protection in addition to your base policy.
Examples of endorsements are identity theft protection and equipment breakdown coverage due to a mechanical failure to appliances or systems.
Deductible
Deductible this is the amount you must pay during a claim before your homeowners insurance begins paying a benefit.
For example, if your deductible is $1,000 and you file a claim for $10,000 in repairs, your insurer will pay $9,000 after you pay your deductible.
Wind and hail deductibles apply to damage explicitly related to wind or hail, while all-peril deductibles apply to other circumstances.
Zip code
Zip code not only does living in the state of Vermont affect your rates, but so does the particular zip code you live in.
For example, if you live in a remote, wooded rural area of Vermont more than 10 miles from the nearest fire station, you can expect to pay substantially higher rates than a homeowner in a newer Burlington suburb less than a mile from a fire station.
Your home’s age
Your home’s age because older homes have older appliances and systems (electrical, plumbing, etc.), and insurers charge higher homeowners insurance rates because the house is more prone to damage than a newer home in the same area.
For example, an older home is more likely to suffer fire damage caused by an outdated electrical system than a new home of the same square footage in the same zip code.
However, if you own an older home, update your appliances and systems, or replace your roof, let your insurer know. They may lower your rates.
Our Methodology
How We Picked the Best Homeowners Insurance Companies in Vermont
In choosing the best homeowners coverage in Burlington, South Burlington, Essex, Rutland, and the rest of Vermont, we considered several criteria:
Discounts
Discounts are important in making insurance affordable for families purchasing homeowners and other types of insurance.
They incentivize policyholders to take preventive measures against property damage and personal injury.
This reduces the number of claims an insurer will pay out, which translates into discounts and lower premiums for policyholders.
Bundle discounts were important criteria for us because it’s the largest discount multi-line insurers provide.
Coverage
We narrowed our list down by the coverage options insurers offered.
Because the base policies are very similar for most insurers, the number and types of endorsements they had were an important determinant in our ratings.
Technology
Because an increasing number of people purchasing insurance are comfortable using technology, including websites and apps, we ensured each company had a website that was easy to navigate.
All but one company we considered had a mobile app for claims and policyholder service. However, that company (Vermont Mutual) made the list because it satisfied other important parameters we considered.
NAIC Rating
The NAIC (National Association of Insurance Commissioners) rating (measuring policyholder complaints) was an important factor in our analysis.
While there was a fair amount of disparity between the companies, all the insurers evaluated had fairly good ratings.
Larger insurers were at a slight disadvantage because of the size of their customer base, creating the potential for more complaints.
Premiums
As with any insurance purchase, premiums are always a factor in a buying decision.
For that reason, it is a factor in our analysis.
Vermont has some of the lowest homeowners insurance rates in the country, and we found no insurer to be unreasonably priced.
Read more: How Much Does Homeowners Insurance Cost?
