Information for Vermont Homeowners

Everybody that owns a home should have some sort of home insurance. If you have a mortgage, your lender will probably require that you have a policy. It covers your most valuable possession, your home, so you want to make sure that you have the right amount of protection. What you don't know about your policy could be costly. Although plans are similar wherever you go, Vermont has different environmental conditions than some other areas in the country. Experts recommend that you review your plan once a year in order to ensure that you are still included under the amounts that you need.

What is Not Generally Covered in Your Home Insurance Plan

Most policies do not look after flooding. While you may think that you are not in a risky area because you don't live in a low lying area or near a river, about 25% of people that make flood claims live in areas that are in a low-risk area. A flood add-on is usually purchased separately from the national flood insurance program. Earthquake protection typically has a higher deductible than other types. You may not think that you need earthquake protection in Vermont, but experts say that there is anywhere between a 1 in 20 and a 1 in 50 chance of seeing an earthquake above 5.0 on the Richter scale in any given year. If your home were to be damaged in an earthquake, the loss could be devastating. Fortunately, this type of add-on costs less in Vermont than in many other areas of the country.

What Is Included in a Standard Plan?

There are typically six different areas that are included in a basic option. These are:

• Structure - The structure of your home includes the walls, floors, ceilings, and other parts of your basic home. You should check annually to ensure that you still have enough coverage to rebuild the house in the event that your house is destroyed.
• Detached buildings - If you have a pool, storage shed, or detached garage, they would be covered by this portion of your agreement.
• Personal property - This is what you own, including appliances, clothes, toys, and furniture. If you have anything that is particularly expensive, such as jewelry, you may have to have that specially included in your agreement.
• Loss of use - This looks after any additional expenses that you would incur if your house were to be damaged and you could not live in it while it was being repaired. Could you afford to pay rent and a mortgage at the same time? Loss of use would help you pay to rent an apartment while your home was being repaired.
• Personal liability - If your horse damages your neighbor's fence or someone falls and hurts themselves on your property, personal liability insurance would shield any damages that you were legally responsible for.
• Medical payments - This concerns medical payments for visitors that are injured at your house. Grandpa slips on some ice and breaks his hip on your sidewalk? His medical expenses would be taken care of under this portion of your policy.

Your Credit Score Affects Your Rate

Like it or not, your credit score may affect how much you are paying for protection. There is a statistical correlation between a low credit score and more claims made on a person's homeowner's plan. To raise your credit score and perhaps lower your premiums, check your credit report for errors. Make your payments on time, and pay down your credit cards.