Vermont homeowners pay some of the nation's lowest home insurance rates, averaging just $1,054 annually, 70% below the national average. Understanding your coverage options and comparing providers helps you secure affordable protection for your property.
Average Home Insurance Cost in Vermont
Updated: January 18, 2026
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Key Takeaways: Vermont Home Insurance Rates
Vermont home insurance costs average $88 monthly or $1,054 annually, ranking as the second most affordable state for homeowners coverage nationwide.
Determine your coverage needs, gather multiple quotes and research providers to find the best home insurance in Vermont at competitive rates.
MoneyGeek's free home insurance calculator helps you estimate Vermont coverage costs in seconds without providing personal information.
How Much Is Home Insurance in Vermont?
Vermont's average home insurance premium costs $88 monthly or $1,054 annually. This is $201 less per month than the national average, making Vermont the second most affordable state for home insurance coverage.
| Vermont | $1,054 | $3,467 | -70% |
*These rates are for a frame construction home built in 2000 with $250,000 dwelling, $125,000 personal property, $200,000 liability coverage and a $1,000 deductible.
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$220
High
$144
Average
$104
Low
Rates updated:
Feb 07, 2026
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What Affects Average Vermont Home Insurance Costs?
Vermont home insurance costs vary based on your location, coverage limits, home construction type, insurance company, credit score and claims history. These factors work together to determine your premium, with some having more impact than others on your final rate.
Average Vermont Home Insurance Cost by City
Home insurance costs vary across Vermont cities based on local factors. Property values, building ages, and weather risks differ between locations, creating premium variations. Cities with older homes or higher natural disaster exposure see increased rates.
| Barton | $92 | $1,109 |
| Burlington | $80 | $962 |
| West Pawlet | $91 | $1,092 |
Average Vermont Homeowners Insurance Pricing by Coverage Level
Most Vermont homeowners select $250,000 dwelling coverage, which averages $88 monthly or $1,054 annually. Lower your costs to $590 annually with $100,000 coverage, or increase protection to $3,134 annually for $1 million coverage. Higher dwelling limits provide greater financial protection but increase premiums proportionally.
| $100K Dwelling / $50K Personal Property / $100K Liability | $49 | $590 |
| $250K Dwelling / $125K Personal Property / $200K Liability | $88 | $1,054 |
| $500K Dwelling / $250K Personal Property / $300K Liability | $148 | $1,781 |
| $750K Dwelling / $375K Personal Property / $500K Liability | $200 | $2,395 |
| $1MM Dwelling / $500K Personal Property / $1MM Liability | $261 | $3,134 |
Average Cost of Vermont Home Insurance by Company
Your insurance company choice affects home insurance costs in Vermont. Travelers charges $2,499 annually compared to Vermont Mutual's $514, a $1,985 difference. Vermont Mutual offers the lowest rates among providers analyzed.
| Vermont Mutual | $43 | $514 |
| Concord Group Insurance | $56 | $666 |
| USAA | $75 | $901 |
| Foremost Insurance | $75 | $905 |
| Allstate | $77 | $926 |
| MMG Insurance | $83 | $1,002 |
| State Farm | $85 | $1,020 |
| Travelers | $208 | $2,499 |
Vermont Homeowners Insurance Costs by House Age
Home age impacts Vermont homeowners insurance costs. Properties built in 2020 average $747 annually, while homes from 1980 cost around $1,101 per year. Older homes cost about 47% more to insure than newer construction in Vermont.
| Newer | $62 | $747 |
| Middle Age | $88 | $1,054 |
| Older | $92 | $1,101 |
Average Vermont Home Insurance Cost by Credit Score
Poor credit costs Vermont homeowners 3.5 times more than excellent credit for identical coverage. Annual premiums range from $487 with excellent credit to $1,704 with poor credit. Pay bills on time and reduce debt to improve your credit score and lower insurance costs.
| Excellent | $41 | $487 |
| Good | $88 | $1,054 |
| Below Fair | $108 | $1,297 |
| Poor | $142 | $1,704 |
Why Is Home Insurance So Affordable in Vermont?
Vermont ranks as the second most affordable state for home insurance, with premiums 70% below the national average. Several factors contribute to these low rates:
Strong Building Codes
Vermont enacted comprehensive building codes in 2006 requiring stricter construction standards for residential properties. These codes mandate improved wind resistance, proper ventilation and enhanced structural integrity. Homes built to modern standards suffer less damage during storms, resulting in fewer claims and lower insurance costs.
Lower Natural Disaster Risk
Vermont experiences minimal hurricane, tornado and earthquake activity compared to coastal and southern states. The National Oceanic and Atmospheric Administration reports that between 1980 and 2024, Vermont only had 19 weather or climate disaster events with losses exceeding $1 billion each, averaging 0.4 events per year.
Low Population Density
With only 648,000 residents across 9,200 square miles, Vermont maintains one of the lowest population densities in the nation. Rural areas face fewer liability risks from neighbor disputes, reduced theft rates and lower vandalism compared to urban markets. These factors reduce claim frequency and premium costs.
Tips to Save on Vermont Home Insurance
Vermont has affordable home insurance. You can find the cheapest home insurance in Vermont by using these proven strategies,
- 1Calculate Coverage Needs
Start with your home's replacement cost using current construction prices, not market value. Vermont construction costs range from $150 to $200 per square foot, making accurate estimates important.
Inventory your belongings to determine personal property coverage requirements, then add Vermont-specific protections like water backup coverage for basement flooding in Burlington or increased replacement cost coverage for older homes with unique architecture.
- 2Research Rates and Discounts
Generate baseline estimates using MoneyGeek's Vermont home insurance calculator before contacting insurers. Request quotes from multiple companies and ask specifically about available discounts. Security systems, claim-free records, newer homes and protective devices like smoke detectors reduce premiums by 5% to 20%.
- 3Compare Multiple Providers
Collect quotes from at least three insurers, evaluating more than just price. Review customer satisfaction ratings, claims processing speed and financial strength scores. A lower premium may cost more long-term if the company provides poor service or delays claim payments when you need coverage most in Vermont's harsh winters.
- 4Bundle Home and Auto
Combine home and auto insurance with one provider to unlock bundling discounts ranging from 10% to 25% in Vermont. This strategy works particularly well for homeowners in areas like Montpelier where both policies may face similar weather-related risks.
- 5Lower Your Risk Profile
Install safety features like smoke detectors, security systems or storm shutters to qualify for immediate premium reductions. Maintain a claim-free record to save $168 to $309 annually compared to filing claims. Improve credit from below fair to good to save about 19% in Vermont by paying bills on time and reducing debt.
Calculate Vermont Homeowners Insurance Costs: FAQ
The following FAQs help you understand what affects your rates and estimate potential expenses for coverage in the state.
How much will my premium increase after filing a claim in Vermont?
Filing a claim in Vermont increases your homeowners insurance premium by $168 for one claim and $309 for two claims compared to claim-free customers. Vermont homeowners without any claims pay $1,054 annually on average.
One claim raises your rate to $1,222 per year, while two claims bump it up to $1,363 annually. Claims remain on your record for five years.
How much can I save by choosing a different insurer in Vermont?
Shopping around for home insurance in Vermont can save you thousands of dollars each year. Vermont Mutual charges just $514 annually for coverage, while Travelers costs $2,499 for similar protection.
Foremost Insurance averages $905 per year compared to Allstate's $926 annual premium, a $21 yearly difference that adds up over time. Compare quotes from at least three insurers to find the best rate for your situation.
Does home insurance in Vermont cover tornado damage?
Yes, standard home insurance policies in Vermont cover tornado damage. Tornado damage falls under the windstorm coverage that's included in most homeowners insurance policies.
If flooding occurs during a tornado, you'll need separate flood insurance to cover water damage.
Why does home insurance cost more for older homes in Vermont?
Home insurance costs jump for older properties in Vermont. Older homes cost 47% more to insure than newer ones, creating a substantial financial gap for homeowners.
A newer home averages $747 annually in Vermont, while an older home costs around $1,101 per year. That's a $354 difference between the two age categories. Middle-aged homes fall between these extremes at $1,054 annually.
Does Vermont home insurance cover ice dam damage?
Most Vermont home insurance policies cover ice dam damage to your home's interior, including water damage to walls, ceilings and floors. But policies exclude the cost of removing the ice dam itself or repairing the roof damage that allowed water infiltration.
How We Analyzed Vermont Home Insurance Rates
MoneyGeek calculated Vermont home insurance estimates by analyzing real premium data across multiple factors that affect your costs. This approach shows how your specific situation influences what you'll actually pay.
We built our analysis around a standard homeowner profile: $250,000 dwelling coverage, $125,000 personal property coverage, $200,000 liability coverage, and a $1,000 deductible. The model assumes a home built in 2000 with frame construction, composition roof, and no claims filed in the past five years.
This profile represents typical Vermont homeowners and enables accurate rate comparisons. The $250,000 dwelling amount aligns with median home values across Vermont markets. The 2000 construction year reflects the most common home age category statewide.
Our methodology isolated each factor's impact by changing one variable while keeping others identical. For example, when testing how construction year affects premiums, we compared homes built in 1980, 2000, and 2020 while maintaining the same coverage levels and homeowner characteristics.
Your actual premiums will vary depending on your home's specific features, location, coverage choices, claims history, credit profile, and insurance company. The rate differences shown here demonstrate how much individual factors can shift your costs when shopping for coverage.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. He has analyzed the insurance market for over five years, conducting original research for insurance shoppers. His insights have been featured in CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
He writes about economics and insurance, breaking down complex topics so people know what they're buying.
sources
- NOAA. "Vermont Summary." Accessed January 5, 2026.