Vermont FAIR Plan: there isn't one, and what to do instead

Does Vermont have a FAIR Plan?

No. Vermont does not operate a FAIR Plan or any state-run insurer of last resort. If every admitted carrier in Vermont has turned you down, the route is the surplus-lines (E&S) market: a licensed surplus-lines broker places the policy with a non-admitted carrier. Expect a higher premium and no state guaranty-fund backstop if the carrier later fails.

What is changing right now?

Key 2023-2026 timeline: Jul 2023 , catastrophic floods (FEMA-4720); late 2023 , DFR 2023 Flood Insurance Data Call (Bulletin 227); Jun 17 2024 , Act 181 flood-risk disclosure law effective; Jul 2024 , second consecutive July flood (FEMA-4810); Jan 2025 , DFR Consumer Advisory: Rising Insurance Premiums; Apr 14 2025 , Kaj Samsom appointed DFR Commissioner; Jul 1 2025 , Vermont Climate Council 2025 Climate Action Plan released; 2025-2026 , NFIP policy uptake roughly doubles vs. 2024 baseline (~2,223 → ~4,500).

How Vermont handles hard-to-insure homes

Surplus lines (non-admitted) market; no FAIR Plan, no JUA, no Beach/Wind plan, no state-backed insurer of last resort. Vermont also does not maintain an eligible-insurers list , eligibility is governed by federal NRRA (15 U.S.C. § 8204) plus 8 V.S.A. § 5026 ($15M minimum capital and surplus). (Source: Vermont Statutes Title 8 Chapter 138, verified 2026-05-14.)

Vermont surplus lines tax is 3% of premium, remitted quarterly by the broker (8 V.S.A. § 5035). Vermont does not maintain a state eligible-insurers list (DFR terminated all non-admitted insurer authorizations July 21, 2011); eligibility is determined under federal NRRA , domestic insurers need ≥$15M capital and surplus and authorization in their domicile state, alien insurers must appear on the NAIC IID Quarterly Listing. (Source: Vermont Department of Financial Regulation / 8 V.S.A. Chapter 138, verified 2026-05-14.)

How Vermont regulates the homeowners market

Vermont Department of Financial Regulation (DFR), Insurance Division (Source: Vermont Department of Financial Regulation, verified 2026-05-14.)

Vermont's property/casualty rate regulation is governed by 8 V.S.A. Chapter 128. DFR reviews homeowners filings for whether rates are excessive, inadequate, or unfairly discriminatory , but explicitly does not set or pre-approve rates for consumers; rates change after DFR review of the carrier filing. (Source: Vermont Department of Financial Regulation Consumer Advisory: Rising Insurance Premiums (Jan 2025), verified 2026-05-14.)

Vermont requires 45 days' written notice of cancellation or non-renewal for fire/casualty (including homeowners) policies under 8 V.S.A. § 3879 (cancellation) and § 3880 (non-renewal); 15 days' notice is allowed only for non-payment of premium or substantial increase in hazard. The reason(s) must accompany the notice. No standing post-disaster non-renewal moratorium statute exists; DFR may issue bulletins after a declared event. (Source: Vermont Statutes 8 V.S.A. § 3879 (Cancellation of fire and casualty insurance) / § 3880 (Non-renewal), verified 2026-05-14.)

Recent Vermont home-insurance changes

Key 2023-2026 timeline: Jul 2023 , catastrophic floods (FEMA-4720); late 2023 , DFR 2023 Flood Insurance Data Call (Bulletin 227); Jun 17 2024 , Act 181 flood-risk disclosure law effective; Jul 2024 , second consecutive July flood (FEMA-4810); Jan 2025 , DFR Consumer Advisory: Rising Insurance Premiums; Apr 14 2025 , Kaj Samsom appointed DFR Commissioner; Jul 1 2025 , Vermont Climate Council 2025 Climate Action Plan released; 2025-2026 , NFIP policy uptake roughly doubles vs. 2024 baseline (~2,223 → ~4,500). (Source: Vermont Department of Financial Regulation / FEMA / Vermont Legislature, verified 2026-05-14.)

Your protections if you're declined in Vermont

If admitted carriers decline you in Vermont, options are: (1) work with a DFR-licensed surplus-lines broker for non-admitted (E&S) coverage, recognizing that surplus-lines policies are not backed by the Vermont Property and Casualty Insurance Guaranty Association; (2) shop the admitted market , Vermont Mutual, State Farm, Travelers, Allstate, Auto-Owners are all actively writing; (3) buy flood coverage separately (NFIP or private market) , standard homeowners excludes flood; (4) file a complaint with DFR Consumer Services at (800) 964-1784 if a non-renewal or cancellation violates the 45-day notice or reason-stated requirement under 8 V.S.A. §§ 3879-3880. (Source: Vermont Department of Financial Regulation, verified 2026-05-14.)

Vermont Property and Casualty Insurance Guaranty Association covers claims against insolvent admitted carriers; surplus lines / non-admitted insurers are not covered. 8 V.S.A. § 5028 requires a conspicuous notice on every surplus lines policy advising the policyholder of this gap. (Source: Vermont Statutes Title 8, verified 2026-05-14.)

How we compile and verify every fact on this page →

What to do this week if you just got a non-renewal notice

1. Read the notice fully. Note the cancellation date: that is your runway.
2. Call your current agent and ask why. Some non-renewals are reversible (a minor issue, a missed inspection); most aren't.
3. Get quotes from at least three other admitted carriers before reaching the surplus-lines market. If you're rural / WUI / coastal you may strike out; that's normal.
4. If admitted carriers decline, contact a licensed surplus-lines (E&S) broker in Vermont. They can submit on your behalf the same week.
5. Don't let coverage lapse. A lapse triggers force-placed insurance from your lender: much more expensive, and worse coverage.

For the full playbook see I just got a non-renewal notice →