Insurance companies base their home insurance rates on the value of your property and how likely it is that something bad will happen to it. The higher the probability that a damaging event will affect your house and property, the more expensive your home insurance policy will be. These potential damaging events are called "risks” or “exposures.”
Let’s take a look at how risky Vermont is compared to the rest of the United States.
The burglary rate in Vermont is lower than the national average. This helps to keep coverage costs affordable in this state. Insurance companies will look at crime rates in your particular ZIP code when determining how high your premiums will be.
- Average number of burglaries per 1,000 homes in the US: 3.76
- Average number of burglaries per 1,000 homes in VT: 2.34
Several insurance companies offer policy discounts to homeowners who have burglar alarms, deadbolt locks, and other security features installed in their homes. Talk to a local independent agent to learn whether you qualify for this or any other discounts.
Severe weather events, including hailstorms and high winds, can wreak havoc on residential properties in this state. Be sure that your home insurance provides all the coverage you need before disaster strikes.
- Number of federally declared disasters since 1953: 50
- Most common causes of VT disasters: Severe storms, floods, and hurricanes
- Average number of tornadoes per year: 0.6
- Amount paid out in home insurance claims in 2019: $75,753,000
Be aware that flood damage is not covered by homeowners insurance. A local independent agent can help you assess your flood risk and, if needed, can set you up with an affordable flood insurance policy through the National Flood Insurance Program (NFIP).
The size of your house can affect your home insurance rates, since larger homes tend to have more personal property inside them. The estimated cost to rebuild your home will also play a large role in how much your home insurance costs.
- Average home value in the US: $188,900
- Average home value in VT: $226,300
In Vermont, the average home value is higher than the national average. Of course, some cities in this state, like South Burlington, have a greater abundance of high-value properties than others, like Barre, and therefore the average rates for coverage in these cities tend to be higher.