Short answer: Vermont's recent floods made one lesson clear: flood damage is usually excluded from homeowners insurance, and basement water claims depend on where the water came from. The Department of Financial Regulation tells homeowners to document the source of the water and the damage before cleanup, report damage through Vermont 211, and file claims promptly. Insurers must give 45 days' notice of non-renewal and acknowledge a claim within 10 business days.
This guide is general information for Vermont homeowners. It isn't legal advice. Your policy wording controls.
Step 1: After a flood, follow DFR's steps
The Department of Financial Regulation (DFR) pamphlet Navigating Property Coverage Post-Flood advises:
- Report damage through Vermont 211 so the state can share information with FEMA and help obtain disaster relief.
- File a claim with your insurer right away, even if you expect a denial, because you may need proof of denial to apply for disaster relief.
- Document the source of the water and the damage before cleanup. Whether basement water is covered can depend on how it got in and your policy language, such as a sewer or drain backup endorsement.
- Take lots of photos and back them up to the cloud.
Step 2: Buy flood insurance for next time
Homeowners policies usually exclude flood. Quote NFIP or private flood insurance through FloodSmart, and add a sewer and drain backup endorsement.
Step 3: Non-renewal notice
Under 8 V.S.A. §4713, insurers must give 45 days' advance notice of non-renewal. Details: Vermont homeowners non-renewal rules. If coverage is hard to find, see FAIR Plan vs. surplus lines home insurance.
Step 4: Claim deadlines
Under Vermont's fair claims regulation, insurers must acknowledge a claim within 10 business days and accept or deny within 15 business days after properly executed proofs of loss, or explain why they need more time. More: Vermont insurance claim deadlines.
See our tables: non-renewal notice rules by state, insurance claim deadlines by state and home insurance claim and lawsuit deadlines by state.
Questions? Contact Alishahi Insurance or call (877) 711-4545. See insurance in Vermont.
Frequently asked questions
Should I file a Vermont homeowners claim for flood damage if it's excluded?
DFR suggests filing promptly, because you may need proof of denial to apply for disaster relief.
Is basement water covered in Vermont?
It depends on the water's source and your policy language, including any sewer or drain backup endorsement. Document the source before cleanup.
How much notice before a Vermont homeowners non-renewal?
45 days under 8 V.S.A. §4713.
How fast must a Vermont insurer acknowledge a claim?
Within 10 business days.
Alishahi Insurance · 439 N Canon Dr, Penthouse, Beverly Hills, CA 90210 · (877) 711-4545 · CA License #4348151. General information only. This isn't legal, tax or financial advice or a coverage determination. Coverage depends on policy language and underwriting, and rules vary by state.