With its beautiful forests and Green Mountains, Vermont is one of the best places to purchase a home. But in order to buy a good home, you have to buy homeowners insurance. Although the insurance purchasing process may seem complicated, it’s not quite as bad as you might think. Especially if you read our handy homeowners insurance buying guide. We can help you navigate the pitfalls of homeowners insurance so that you can protect your investment and have peace of mind.
If you’re going to by home insurance, you’re most likely going to settle on a special form policy. These are also known as HO-3. They offer comprehensive coverage on pretty much everything you need to protect – both inside and outside of your home. And they do so at a relatively affordable rate. Just look at the chart below for the amount of coverage you will be expected to purchase with a HO-3 policy.
|Type of Coverage||Coverage Amount|
|Replacement Cost (Dwelling)||$200,000|
|Replacement Cost (Contents)||$100,000|
All of the estimates shown below are based on an average home value of about $200,000. Your home value may vary, and your annual premium will vary accordingly. The numbers we present to you are the best estimates that our team could gather based on all available data. But we believe they’re Fairly reliable, and a good starting point for your insurance shopping experience.
Despite some pretty sinister perils that are fairly common within the state of Vermont, the state’s average homeowner’s insurance premium is actually fairly low. As a matter of fact, it’s about 19% lower than the national average. This may have something to do with the fact that most of the insurance companies located in Vermont have been in business for over a century – some even a century-and-a-half. So they have a well-established business practice, and they know how to ensure their customers with the right cop coverage for the best value.
Shopping around for the best price rarely ever hurts anyone, and the same is true for homeowners insurance. As you can see in the chart below, you could save yourself anywhere from $200 to $300 per year on your policy. That’s a nice chunk of change on a yearly basis, and can also amount to several thousand dollars worth of savings over the life of your home.
Some homeowners, especially first time home owners, may not be aware of this but homeowners insurance is not a legal requirement. It differs from insurance like auto insurance in this way. But if you are purchasing your home with a mortgage, like the vast majority of homeowners, then your bank may make it a mandatory requirement. After all, until you finish paying off your mortgage, the bank still taglione your house. And they want to protect their investment just as much as you would if you owned your home outright.
Do you know how much your personal property is worth? Well, if you’re shopping for homeowners insurance, then you definitely should. Knowing the exact value of your personal property is an essential step in purchasing the best coverage for your money. Overestimating the value of your goods can lead you to purchase too much coverage, which make you end up wasting money on inflated premium costs. But under estimating your property’s worth is also dangerous, even if you’re just doing it to lower your annual premium. If something happens, and you need to file a claim then you may not get a sufficient payout in order to repair or replace your property. And if that happens, you’re going to be left holding a pretty hefty bill.
The most obvious perils that Vermont residents have to worry about are hurricane-related. But those aren’t the only disasters that can befall your home and/or property:
Knowing the difference between replacement cost and actual cash value is a very important part of purchasing your home insurance policy. Replacement cost will put you in the best financial position if you have to file a claim, but it will also make your premium higher each year. This is because your insurance company ends up paying 100% of the cost associated with repairing or replacing the damaged item in your claim. All you have to pay as your deductible.
Actual cash value Works a little bit differently. You end up paying more for the repairs or the replacement, in addition to your deductible. This is because your insurance company incorporates depreciation into the overall cost of the repairs. on the bright side, though, the more actual cash value coverage you purchase, the lower your annual premium will be.
Homeowners insurance companies generally rely on your insurance score as well as your CLUE report in order to estimate your overall credit rating. They rarely ever make hard checks on your credit, which could end up lowering your credit score. These generous, softer checks are great for homeowners because you can get several quotes from many different companies without worrying about whether or not it will have a negative impact on your credit. And the better your credit score is, the better your annual premium will be. We have some links below if you need more information on Clue reports or Insurance scores.
For more information, feel free to click any of the links you see in this article. They all lead to more detailed information about homeowner’s insurance, specifics on purchasing a policy, and how to find the best deal. You should also contact local resources in your state, such as:
Or contact them directly through the following resources:
State of Vermont
Department of Financial Regulation
89 Main Street
Montpelier, VT 05620 – 3101