Vermont • Insurance non-renewal or spike
Your Vermont condo insurance spiked after the floods — and there's no FAIR Plan
Vermont's insurance story is flooding — and the dangerous fact that much of it happens where the maps say it shouldn't. A non-renewal or spike here is almost always flood-driven, and the coverage gap is wide.
The short answer
Vermont's 2023 and 2024 floods caused close to $1 billion in damage and hit up to 200 of 247 towns — with 35–40% of 2023 claims OUTSIDE the mapped flood zone. Master policies exclude flood, Vermont has no FAIR Plan, and flood-insurance uptake is among the nation's lowest. CondoSignal reads your master policy and HO-6 against the Vermont market. Free.Vermont at a glance
2023/2024 floods
≈ $1B
Up to 200 of 247 towns.
Outside flood zone
35–40%
Of 2023 claims.
FAIR Plan
None
Non-renewals go to surplus lines.
Flood
Excluded
Among lowest US uptake.
Catastrophic, under-mapped flooding
The July 2023 and July 2024 floods together caused close to $1 billion in damage and hit up to 200 of Vermont's 247 towns. Critically, 35–40% of 2023 claims were on properties outside the mapped Special Flood Hazard Area — so traditional flood maps understate the real risk, and a building 'not in a flood zone' can still flood badly.
The coverage gap
The required master policy (§ 3-113) covers 80% of actual cash value but excludes flood, and Vermont has one of the lowest flood-insurance uptake rates in the country. With no FAIR Plan, a flood-exposed or aging building that gets non-renewed has to use the surplus-lines market. Confirming the association carries NFIP or private flood coverage is now the highest-priority diligence item.
Deductibles and financing
Master deductibles are trending up, and a deductible over 5% of replacement cost can impair Fannie/Freddie and FHA financing. Reading the master policy for flood coverage and the deductible — against your HO-6 loss-assessment coverage — shows where your exposure really sits.
Your rights in Vermont
Vermont associations must carry master property at 80% of actual cash value (§ 3-113), but flood is excluded and there's no FAIR Plan. None of this is legal advice — confirm against Title 27A and a Vermont-licensed broker.
What to check
- Confirm whether the association carries NFIP or private flood coverage.
- Don't assume safety from the flood map (much damage is outside it).
- Establish whether the master policy or your HO-6 changed.
- Find the master deductible and any 5%+ financing risk.
- Check for unassessed 2023/2024 flood damage.
- Confirm your HO-6 loss-assessment coverage.
Sources
- 27A V.S.A. § 3-113 — property & liability insurance (no flood)(High)
- Vermont DFR — rising-premiums consumer advisory (2025)(High)
Educational only — not legal, financial, or engineering advice. Confirm against the current statute and, where it matters, a Vermont-licensed professional.
Related guide
Vermont insurance risk — the full guide →This page answers what to do right now. For how insurance risk works in Vermont — the law, the process, and what to check before you buy or sell — read the full state guide.
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