Vermont Homeowners Pay Some of the Lowest Insurance Costs In The Country

Vermont homeowners benefit from some of the lowest home insurance premiums in the nation, even as costs rise elsewhere.

While Gulf Coast and Western states face steep affordability pressures, new data from the U.S. Census Bureau and the 2025 Climate Risk Report show that Vermont remains one of the most affordable places for homeowners coverage.

Vermont’s Insurance Costs Stay Affordable

According to the American Community Survey (ACS) data from the U.S. Census Bureau, Vermont homeowners with a mortgage typically pay $1,000–$1,499 annually for homeowners insurance, while those without a mortgage average the same $1,000–$1,499. Overall statewide costs also fall into the $1,000–$1,499 range.

Vermont has 209,117 insured homeowner households in total—120,869 with a mortgage and 88,248 without. Among mortgaged owners, 8,818 pay less than $100 annually and 3,264 pay $4,000 or more. Among those without a mortgage, 13,568 pay less than $100 and 1,983 pay $4,000 or more.

Compared with nearby states, Vermont is among the most affordable. Maine homeowners with a mortgage average $1,000–$1,499, while non-mortgaged households pay slightly less at $800–$999. New Hampshire also falls into the $1,000–$1,499 range for both groups, aligning with Vermont. By contrast, Massachusetts and Rhode Island are more expensive, with mortgaged homeowners averaging $1,500–$1,999. Connecticut falls into the same higher range, making Vermont one of the cheapest states for homeowners insurance in New England.

Climate Risks Across the Region

The Climate Risk Report shows how climate hazards drive insurance costs in other states. Miami homeowners pay the most in the U.S., with average annual premiums of $22,718, equal to 3.7% of home value. Other Florida metros, such as Cape Coral, Sarasota, and Tampa , also rank among the most expensive.

Vermont does not appear in the report’s rankings of metros with the steepest insurance burdens, nor is it highlighted for extreme flood, hurricane, or wildfire exposure. While Vermont does face risks such as flooding and winter storms, these have not significantly impacted statewide homeowners insurance costs. As a result, premiums remain among the lowest in the country.

A National Affordability Challenge

Even with Vermont’s affordable costs, insurance affordability remains a growing national issue. The Realtor.com 2025 Insurance Affordability Report found that 75% of Americans believe homeowners insurance could soon become unaffordable, while nearly half said they had already faced challenges renewing or obtaining coverage.

These concerns are already reshaping homebuying behavior. Nearly 30% of homebuyers said they had completely changed the areas where they were searching because of insurance concerns, while another quarter said they had overhauled their strategies altogether. A recent migration analysis shows that some buyers are relocating to areas with the lowest home insurance premiums, shifting demand across regions.

Even more concerning, 58% of homeowners nationwide said they would consider dropping coverage altogether if premiums rose too high, with younger homeowners the most likely to take that risk.

Vermont’s Outlook

For Vermont households, affordability provides stability at a time of rising premiums nationwide. Still, with climate risks intensifying across the U.S., residents may want to use a home insurance comparison tool to evaluate coverage options. Maintaining Vermont’s advantage may become more challenging in the years ahead.

This article was produced with editorial input from Dina Sartore-Bodo, Gabriella Iannetta, and Allaire Conte.