Best Homeowners Insurance Agencies in Vermont

Vermont Homeowners Insurance Agency FAQs

• What is not covered by a standard homeowners' insurance policy in Vermont?

  Standard homeowners' insurance in Vermont excludes coverage for certain risks like floods and earthquakes, which can be obtained through government-backed policies managed by the Federal Emergency Management Agency (FEMA). Additional exclusions include business operations, liability arising from malicious acts, routine home maintenance, and damage due to neglect and issues like rust, rot, or mold.

• Can insurance companies raise rates after filing a claim in Vermont?

  In Vermont, insurance companies typically increase rates after a claim is filed, and the degree of the increase depends on factors such as the claim's nature, size, and recent claims history. Having a history of filing claims at previous residences or locations can also lead to a rate increase, as insurers may see you as a higher-risk policyholder more likely to file future claims.

• Is your home insurance transferable if you sell your home in Vermont?

  Your homeowners' insurance in Vermont is not transferable when you sell your home. This is because the insurance policy is a contractual agreement between you and the insurance company and is not tied to the property itself. When you sell your home or transfer ownership, the new owner is obligated to obtain their own insurance policy.

• Does Vermont law require a home inspection before purchasing homeowners' insurance?

  Vermont does not require a home inspection before purchasing homeowners' insurance. However, if you finance your home, your lender might require you to obtain homeowners’ insurance. Insurance companies may opt not to require a home inspection under specific circumstances, such as when the home is less than 25 years old, has undergone a recent inspection, has been recently reconstructed after a fire or other calamity, and is not situated on a floodplain or in an area prone to natural disasters.

• What is "replacement cost" coverage in Vermont homeowners' insurance policies?

  "Replacement cost" coverage in Vermont homeowners' insurance policies refers to a type of coverage that pays for the expenses associated with rebuilding your home or repairing damages without taking depreciation into account. However, to benefit from this coverage, you must choose to rebuild your house in the event of a loss. If you decide not to rebuild, you will only receive the actual cash value of the policy, which considers depreciation.