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Checked against official sources · Last reviewed October 13, 2026

What homeowners insurance costs in Vermont: average premium, 2023 $1,215 a year in Vermont vs. $1,737 countrywide · 40th highest of 51 · All states (HO-3 policies; NAIC)

Vermont's market right now

Regulators' figures show Vermont homeowners premiums are low compared with other states, but rising:

- In a January 17, 2025 briefing to the Vermont Senate Finance Committee, DFR's Deputy Commissioner of Insurance listed Vermont's homeowners premium ranking as "9th lowest." The cost drivers on the slide were inflation, parts and building supplies, labor costs, reinsurance, claim severity and natural catastrophes. - In a January 13, 2025 consumer advisory, DFR said "many policyholders are experiencing significant increases in insurance premiums for auto and homeowners insurance." DFR does not set premiums; it reviews proposed rates to check that they are "not excessive, inadequate or unfairly discriminatory." - Part of a higher bill can come from coverage that grows to keep up with rebuilding costs. DFR's example: a policy with $300,000 of dwelling coverage may renew at about $315,000. - The New Hampshire Insurance Department's 2026 regional review counts about $309 million of homeowners premium written in Vermont in 2024 and $333 million in 2025, and calls every New England state's homeowners market "unconcentrated."

Your right to an explanation. DFR says insurers and agents must give you a clear explanation of a premium increase if you ask, "understandable and specific to the individual consumer." If you ask and don't get one, contact DFR's Insurance Consumer Services at (800) 964-1784 or dfr.insuranceinfo@vermont.gov. [9][11][12][13]

After the 2023 and 2024 floods

Vermont was hit by torrential rain and flooding in July 2023, and again on July 10 and 11, 2024, from the remnants of Hurricane Beryl. After each, DFR sent insurers a bulletin (No. 226, July 11, 2023, and No. 232, July 12, 2024). Both state DFR's position:

- It is "not appropriate for insurers to re-rate, cancel, non-renew, or refuse to provide insurance coverage solely due to an individual's status as a victim or evacuee" of the disaster, and not reasonable to raise rates or change rating classes for that reason alone. - Insurers were encouraged to temporarily suspend premium payments and vacancy provisions for people displaced. DFR explained that "suspension" means an extended grace period, not forgiveness of the premium. - Insurers must investigate each claim, including whether endorsements such as sump pump and water backup coverage apply, and DFR expects them to work with displaced claimants who can't meet the policy's reporting deadlines. - The 2023 bulletin adds that if an insurer denies a claim, it must give documentation so you can apply for federal disaster assistance.

DFR then asked insurers for data on the 2023 flood and rain claims. It reported that insurers closed claims in 24 days on average. Flood policies written in Vermont in 2023: 3,534 through the National Flood Insurance Program, 2,676 private flood policies and 299 excess flood policies. DFR's flood recovery page collects its flood notices and links. [5][6][10][14]

Flood is separate

DFR says "most homeowners policies do not provide coverage for losses due to flooding." Even so, if you have flood damage and no flood policy, DFR says to file a claim with your insurer, because "you will likely need a denial from your insurer to apply for federal disaster assistance." DFR does not regulate federal flood insurance carriers, but it does regulate insurance agents. Our sister site FloodHawk covers flood zones and flood insurance. [15][16]

Can't find insurance? No FAIR plan in Vermont

A FAIR plan is a state-created pool that sells basic property insurance when regular insurers won't. The national directory of these plans, kept by the Property Insurance Plans Service Office (PIPSO), lists none for Vermont (checked Oct. 13, 2026). DFR's homeowners guide doesn't mention one.

Vermont law has two back-up tools, neither of which we found in use for homeowners:

- Insurers may set up a plan to share among themselves applicants "who are in good faith entitled to, but who are unable to, procure such insurance through ordinary methods" (8 V.S.A. 4694). - If the Commissioner finds there is no voluntary market for a line of property and casualty insurance, the Commissioner may start proceedings to create a joint underwriting association (8 V.S.A. 4696).

What DFR's homeowners guide (revised April 27, 2021) suggests instead: the market "is competitive in nature. Therefore, it pays to shop around," and "some companies may be more willing than others to insure you for a certain type of risk." DFR's 2025 advisory adds that if you switch, don't cancel the old policy until you've confirmed the new one is active, so you don't have a gap.

Surplus lines. If no licensed ("admitted") insurer will cover the full amount, a licensed surplus lines broker may place the rest with an insurer not licensed in Vermont (8 V.S.A. 5024). Such a policy must be stamped: "Any default on the part of the insurer is not covered by the Vermont Insurance Guaranty Association" (8 V.S.A. 5028). See our surplus lines guide and our FAIR plan guide. [1][7][12][17][18][19][20]

If your insurer cancels or won't renew

Vermont's cancellation and nonrenewal rules for fire, casualty and multi-peril policies are in 8 V.S.A. 3879 to 3883. DFR's homeowners guide describes the same rules for homeowners policies.

Allowed reasons to cancel mid-term. Once a new policy has been in effect 60 days, or at any time for a renewal policy, the insurer may cancel only for:

- nonpayment of premium; - fraud or material misrepresentation affecting the policy or a claim, or violation of the policy's terms or conditions; - a substantial increase in hazard, and then only with the Commissioner's prior approval.

DFR's homeowners guide puts it this way: during the first 59 days of a new policy an insurer may cancel for any reason; after that, only for reasons like these.

Other protections:

- Late renewal notice. If the insurer doesn't confirm the renewal and premium 45 days ahead, it must renew you at the expiring premium (or rates in effect on the expiration date that the Commissioner approved) for 45 days after it does confirm (8 V.S.A. 3882). - How notices are sent. A cancellation or nonrenewal notice sent by mail must go by certified mail. For cancellation for nonpayment, a certificate of mailing or a similar USPS tracking method is also allowed (8 V.S.A. 3883, as amended effective July 1, 2024). - No 45-day notice needed for nonrenewal if the insurer has said it is willing to renew, or if you didn't pay the premium. - Moved to a sister company. An insurer may move you to an affiliate at expiration without a nonrenewal notice only if the affiliate's rating is as good or better, coverage isn't reduced, and you get at least 45 days' notice by first-class mail (8 V.S.A. 3882(c)). - Your agent dropped by the insurer. If an insurer cancels your agent's or broker's contract, you are entitled to renew for one more annual policy period if you pay on time (8 V.S.A. 3884).

See our nonrenewal guide for next steps. [2][3][4][7][21][22][23]

Where to get help

DFR's Insurance Division takes complaints about homeowners insurance:

- Toll free: (800) 964-1784; also (802) 828-3302 - Email: dfr.insuranceinfo@vermont.gov - Complaints: DFR's insurance complaint page links to an online complaint form and a form you can mail or fax (fax 802-828-1446).

DFR says walk-in appointments are not available; email or call to set up an in-person, phone or virtual meeting. [7][9]

Questions people ask