When it comes to buying a new home, finding great homeowners insurance is an important and often overwhelming part of the process. If you are looking to buy a new home in Vermont, there are a variety of insurance providers that are available in the Green Mountain State, all with their own pricing, coverage, and premiums to figure out. Insurance is a significant part of the expenses that comes with owning a home. Whether you are looking at what you will pay annually or what is covered if you need to file a claim, it is always a good idea to find out ways to get the best deal possible. Here are three ways to get the most out of your homeowners insurance in Vermont.
Shop Around
The State of Vermont does not regulate Premium Rates when it comes to homeowners insurance, yet the State Insurance Division does monitor the market. This allows the rates to stay competitive and reasonable for homeowners to purchase. It is also important to know that Vermont does not require homeowners insurance by law. If you are getting a bank loan for your purchase, almost all mortgage companies require homeowners insurance. Because the rates in Vermont are competitive, one of the best ways to get a deal is to shop around. Consider looking at rates for both national insurance companies and companies that are local to Vermont. Some may have great rates, but less than stellar coverage, or great coverage and higher rates. By shopping around, you can find what works for your budget, your home, and your comfort level of coverage.
Compare
Once you have a spoken to a few insurance companies it is important to start comparing the quotes, coverage, and the company. The premium is the cost you will pay each year to have insurance on your home. It is important to compare that cost along with the coverage and limits of your policy, as well as the customer service of the company itself. There are a few different types of coverage and it is important to figure out how much you want for your home (and what your mortgage lender requires), along with the costs. Most insurance companies use the same type of structure to their policies, which can make it easier to compare apples to apples. The main tiers of homeowners insurance are Basic Coverage, Broad Coverage, Special Coverage, and Modified Coverage. As you look through what is offered in your quotes, examine each coverage type side-by-side, and see where limits, deductibles, and what is covered stacks up. You might find that one quote may be the best price but leaves out important coverage that you know you will need in Vermont (for example, weight of snow, freezing pipes, or ice damage). You also might find that increasing your deductible will decrease your premium, and you are willing to pay the added expense in the event of a claim.
Also, compare the companies themselves. How are they in regards to customer service? You can call the Vermont Insurance Division of the Department of Financial Regulation and find out if there have been any complaints or issues with specific companies or agents in Vermont. Are there some added customer service benefits that might bring you peace of mind in the event that you need to file a claim? Some homeowners insurance companies provide 24-hour claim service, others go beyond that and offer 24-hour repair service. Sometimes the integrity of a company and the knowledge that they are there for you is worth paying a little bit more. In the long run, the value of attentive customer service is often considered to be a very good deal.
Ask Questions
As you are shopping around and comparing different insurance companies, it is important to ask questions that might help you get added discounts or deductions on your premium. Many insurance companies offer a variety of coverages and will give you a deal if you bundle your auto or life insurance with your homeowners policy. If you are planning on establishing a home-based business or small farm, find out if any of the companies you are working with will provide the insurance you might need for your business. You might also consider asking if there is a discount for having a claim-free history or if you are a retiree. Also, when it comes to making improvements to your home, there are a variety of deductions that you can take advantage of once you implement any changes. Some companies have a sustainability discount for LEED homes that are certified by the U.S. Green Building Council. Often there are discounts for installing a hard-wired alarm, fire, and CO2 detection systems. If you are planning on making your new home more disaster resistant in any way, it might be a good idea to see if there are any price changes to reflect that. It is also important to find out what is not covered and what you might need to include as an add-on. If your new home is located near a river, stream, pond, or lake inquire about flood coverage and if it is included or an add-on. Often, something like a flood is not covered by traditional insurance companies, and is only covered by the federal government. If you know the area around your new home is susceptible to ice dams or snow-melt in the spring, you will want to find out if your insurance company can cover that or if it will be an additional call to get FEMA insurance.
2 Point Highlight
Look through what is offered in your quotes, examine each coverage side-by-side, and see where limits, deductibles, and what is covered stacks up.
As you are shopping around and comparing different insurance companies, it is important to ask questions that might help you get added discounts or deductions on your premium.
