By Jon Merwin, Founder and CEO
Renting out property in Vermont comes with its own set of risks. Much of the housing is old, many buildings burn heating oil through long winters, quiet rivers poured into downtown Montpelier and Barre in July 2023, and the state has its own rules on deposits, entry, heat and lead paint. The policy should be built around those facts.
We are Portsmouth Atlantic Insurance, a family-owned agency with our office in Portsmouth, NH. We are licensed in Vermont and insure rental property through 40+ carriers, working with Vermont owners by phone and email: one Burlington condo, a Rutland triple-decker, a farmhouse cut into apartments, or a ski place rented by the season. Call (603) 431-4020.
Key takeaways
- About one in four occupied Vermont homes is rented, and in Burlington close to six in ten are.
- Two- to four-unit buildings hold more Vermont renters than any other building type, and nearly a third of rentals were built before 1940.
- Security deposits come back within 14 days (60 for a seasonal unit), or the landlord can owe double for a willful failure.
- Pre-1978 rentals need annual lead Inspection, Repair and Cleaning work, and the compliance statement goes to your insurance carrier.
- The state Division of Fire Safety now leads rental housing health and safety enforcement.
- Flood, lead and short-term rental use are the gaps most worth checking on a Vermont landlord policy.
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Who rents in Vermont, and in what kind of building
Statewide, renters occupy about 73,300 of roughly 273,400 occupied homes, a little more than one in four (ACS 2024, B25003). In Burlington the balance flips: close to six in ten occupied homes are rented (ACS 2024, Burlington).
Two- to four-unit buildings, the duplexes, triplexes and converted Victorians of every downtown from Brattleboro to St. Albans, house more than one in three Vermont renters, the largest group. Single-family houses rented out account for close to one in four, buildings of five to 49 units for nearly three in ten, and buildings of 50 or more units only about one in 13 (ACS 2024, B25032).
| Vermont rental housing | Approximate share of renter homes | What it means for the policy |
|---|---|---|
| Built 1939 or earlier | Nearly 1 in 3 (about 4 in 10 in Burlington) | Older wiring, plumbing and balloon framing; replacement cost and code upgrade questions |
| Built before 1980 | About 6 in 10 | Lead-paint rules apply to rentals built before 1978 |
| Heated with fuel oil or kerosene | Nearly 1 in 3, the most common renter fuel | Tank, burner and frozen-pipe questions on every application |
| Heated with propane | Close to 1 in 5 | Tank location and delivery contracts |
| In 2 to 4 unit buildings | More than 1 in 3 | Usually a dwelling policy, or homeowners if the owner lives on site |
Sources: ACS 2024, B25036 (year built), Burlington, B25117 (heating fuel). Vermont also has a large stock of second homes: about three of every four vacant homes in the state are held for seasonal, recreational or occasional use, roughly one of every seven homes overall (ACS 2024, B25004). Many are rented part of the year.
Matching the policy to the building
You live in one unit of a duplex or triplex. An owner-occupied homeowners policy can often cover the whole building, with the other units disclosed and liability extended to them.
A one- to four-unit rental you do not live in. This is dwelling policy territory. The basic form lists the perils it covers. The broader “open perils” form covers the structure for anything not specifically excluded, and building losses are frequently settled at replacement cost. Landlord liability and loss of rents are added to it. Our comparison of dwelling fire and homeowners insurance walks through the forms.
Five or more units. These generally go on a commercial habitational package covering the building, liability and lost income.
A condo you rent out. The master policy covers what the declaration assigns it; your unit-owner policy should be written for a rented unit, with improvements, liability and loss of rents.
A camp or ski house rented by the week or the season. This is the most commonly misinsured Vermont rental. See the section on seasonal and short-term rentals below, plus our guides to the Vermont ski house and Vermont homeowners and second-home insurance.
What Vermont’s rental law asks of you, and where insurance fits
Vermont’s Residential Rental Agreements Act, 9 V.S.A. chapter 137, sets the ground rules. Insurance answers sudden damage and liability claims; it never pays for upkeep or rescues a notice that missed a deadline.
| Vermont rule | What it says | Insurance angle |
|---|---|---|
| §4457 habitability | Safe, clean, habitable premises, with heat capable of a reasonable temperature and hot and cold water (heat and water duties exempt summer rentals and hunting camps). | A sudden burst pipe is often covered; wear and neglect are not. Loss of rents helps during repairs. |
| §4458 tenant remedies | An unrepaired serious defect lets the tenant withhold rent, sue or terminate. | Withheld rent is a business risk, not an insured loss. |
| §4460 access | Entry by consent, or with 48 hours’ notice between 9 AM and 9 PM; without notice only for imminent danger. | Regular inspections catch leaks before they become claims. |
| §4461 deposits | 14 days with an itemized statement (60 for seasonal units); double damages if willful. | Major tenant damage may fall to the policy, depending on cause. |
Tenants owe duties as well, including not damaging the unit deliberately or carelessly (§4456), and a small defect left unrepaired for 30 days can be fixed by the tenant and deducted from rent, capped at half a month (§4459). Rent increases need 60 days’ actual notice (§4455), which is a good moment to raise your loss-of-rents limit, and termination notice periods run from 14 days for unpaid rent up to 90 days for some no-cause endings (§4467). For lease questions, talk to a Vermont attorney; this is not legal advice.
Lead paint: a Vermont rule that reaches your insurer
Most Vermont rental owners know the federal lead disclosure form. Fewer realize Vermont adds an annual routine. For rental “target housing”, generally a dwelling built before 1978 (18 V.S.A. §1751), the owner must file a compliance statement with the Department of Health and give new tenants approved lead materials and a copy of the latest statement before signing a lease (18 V.S.A. §1759).
The Department calls the work Inspection, Repair and Cleaning (IRC) practices: yearly and turnover inspections for chipping paint by a certified person, repairs by lead-safe licensed workers within 30 days, window well inserts in old wooden sashes, specialized cleaning, and a posted notice asking occupants to report peeling paint. The compliance statement is filed every year and a copy goes to your tenants and to your insurance carrier (Vermont Department of Health, IRC practices; Vermont Attorney General, lead in housing).
Why it matters: many rental policies exclude or cap lead claims, and underwriters quoting a pre-1978 building often ask whether IRC work is current. Current statements and documented repairs make a building easier to place, so send them at each renewal.
Rental housing health and safety: the Division of Fire Safety
Enforcement of rental housing standards changed in Vermont after Act 181 of 2022. Since January 1, 2024, the state Division of Fire Safety has had primary authority over rental housing health and safety, using a complaint-based system that covers short-term rentals as well, with town health officers able to help with inspections and some cities running their own programs (Vermont Department of Health, rental housing manual; Vermont Division of Fire Safety).
Winter, heating oil and empty units
Fuel oil is still the single most common heating fuel in Vermont rental homes, and propane is close behind (ACS 2024, B25117). A tenant away for the holidays, a missed delivery or a boiler that quits in January can become a water claim on several floors.
- Ask how each policy treats damage from frozen pipes in a unit that is vacant or between tenants; many forms limit it unless heat was maintained or the water was shut off and drained.
- Most forms restrict coverage after a set period of vacancy; tell us before a long gap or renovation.
- Low-temperature sensors and automatic water shutoff valves can stop a small leak from becoming a multi-floor claim, and some carriers ask about them.
- Ice dams and snow load: keep roofs on older buildings clear; see our article on snow and ice damage.
- Hire out plowing? Get the contractor’s certificate of insurance. Plowing or hauling for hire is not covered by a regular personal auto policy and needs commercial auto.
If a building will be empty for a stretch, our guides to vacant home insurance and whether a standard policy covers a vacant property explain the options.
Flood: the lesson of 2011 and 2023
Irene in 2011 and the July 2023 flood showed how far river water can reach in Vermont, yet few buildings carry flood coverage. The Department of Financial Regulation counted 3,534 NFIP policies, 2,676 private flood policies and 299 excess flood policies written in Vermont in 2023 (DFR flood recovery resources), and the state’s insurance commissioner told Vermont Public that take-up sat in the low single digits as a share of homes (Vermont Public, Sept. 2023).
Flood Ready Vermont notes that about nine in ten towns take part in the NFIP, that a policy is available in those towns inside or outside a mapped zone, and that 2023 disaster aid averaged far less than a typical flood claim (Flood Ready Vermont). Landlords face an extra hole: the federal dwelling policy pays for the structure, and the owner’s contents if that coverage was bought, yet nothing for rent lost while units are gutted (FEMA dwelling form). Certain private flood forms add rental income, which is worth a look for a downtown building on the Winooski, the Otter Creek or the White River.
New NFIP policies through us go through Selective, and we can also compare private flood carriers including Neptune Flood, Beyond Floods, Flow Flood, The Flood Insurance Agency, CatCoverage and Aon Edge. We can write with these flood carriers in every state we are licensed in, Vermont included. Look up every building on the FEMA Flood Map Service Center, and put in the lease that tenants need their own renters coverage for their things. Our flood insurance page explains how the two kinds of policy differ.
Seasonal and short-term rentals in ski and lake country
Stowe, Killington, Ludlow, the Mad River Valley, Manchester and the lake towns run on weekly and seasonal rentals, and the law treats them differently: the heat and water warranty does not apply to a summer rental or hunting camp (§4457(c)), deposits on a seasonal unit that is no one’s primary home are due back within 60 days (§4461(c)), and a furnished unit rented for fewer than 30 consecutive days, more than 14 days a year, is a short-term rental under the health statute (18 V.S.A. §4301). Some towns add their own registration rules, so check before the first booking.
Coverage follows the use. A second-home policy may tolerate an occasional rental but exclude or limit a steady flow of weekly guests; the answer may be a home-sharing endorsement, a dwelling form written for short-term rental, or a specialty policy. Tell us the nights rented per year, how bookings happen and whether a manager is involved.
Liability, LLCs and umbrella coverage
Most landlord liability claims start small: an icy back stair, a loose porch railing, a dark basement laundry. Carry liability limits that match the number of units and the condition of the property, and consider a personal umbrella policy that sits over the rentals, your home and your cars, as long as each underlying policy meets the umbrella carrier’s required limits.
Own the building in an LLC? Make the LLC the named insured and confirm the umbrella reaches it. Requiring renters insurance in the lease also helps, since it covers a tenant’s own things and their liability for a fire they cause.
What a Vermont landlord policy can include
| Coverage | What it pays for | Vermont angle |
|---|---|---|
| Dwelling (building) | Repair or rebuilding after a covered loss such as fire, wind or a burst pipe | Old buildings: check replacement cost and ordinance or law coverage for code upgrades |
| Landlord’s contents | Appliances, furniture in furnished units, shared laundry and tools | Furnished ski and lake rentals |
| Loss of rents (fair rental value) | Rent lost while a unit is uninhabitable after a covered loss | Winter repairs take longer; set the limit from current rents |
| Landlord liability | Injury or damage claims from tenants and visitors | Ice, stairs, porches and wood stoves |
| Flood (separate policy) | Building and owner contents after a flood | River towns; NFIP or private |
How we place Vermont rentals
We start with the building: age, wiring and plumbing updates, roof, heat and units. We shop it across our 40+ carriers, explain how the options differ on vacancy, frozen pipes, lead, short-term use and loss of rents, and we don’t charge any fees. Which carrier fits depends on the building and its use, and we compare them for you. For Vermont rentals we usually start with Vermont Mutual, and we also write with Liberty Mutual, Concord Group, Hanover and Foremost. When something goes wrong, we help get the claim reported and keep after the carrier until it is closed.
Owners with rentals in more than one state can read our landlord insurance overview, the guide to landlord versus homeowners insurance, and our longer landlord insurance guide. Vermont owners with a primary or second home should see our Vermont high-value home page, and if a boat or camper comes with the lake house, our Vermont boat and Vermont RV pages cover them. More on who we are and on Jon Merwin, who founded the agency.
Get a Vermont landlord quote
Plenty of the people behind our 1,000+ Google reviews and over 2,000 testimonials own a rental or two. Tell us about the building and how it is rented, and we will put it in front of the right carriers among our 40+ carriers. We don’t charge any fees. Request a quote. There’s no obligation to buy. Use the form on this page or our quotes page, phone (603) 431-4020, or email insure@portsmouthatlanticins.com. We are in the office Monday through Thursday, 9 AM to 5 PM, and Friday, 8 AM to 4 PM (Eastern).
Own rentals across the river? See our page on landlord insurance in Hanover.
Frequently asked questions
Is landlord insurance required in Vermont?
Vermont law does not order rental owners to carry property or liability coverage. The lender usually settles it: a mortgage on a rental almost always requires coverage on the building, and a lender will also require flood coverage when the building sits in a FEMA high-risk zone. Without a loan, skipping liability coverage leaves your personal assets exposed when someone slips on an outside stair, a porch or an unsanded walk.
Can I keep my homeowners policy if I start renting my Vermont house?
Usually not as it stands. A homeowners form assumes the owner lives there. Once you move out and a tenant moves in, the carrier needs to know, and it is typically swapped for a rental dwelling policy carrying landlord liability and loss of rents.
How fast do I have to return a security deposit in Vermont?
Within 14 days of move-out with an itemized statement, or 60 days for a seasonal unit that is no one’s primary home. Late means forfeiting any deductions, and a willful failure can mean double damages (9 V.S.A. §4461). A deposit rarely covers serious damage; the policy is what handles that.
Does my insurance company need to see my lead-paint compliance statement?
For a rented building from before 1978, yes: the Department of Health says a copy of the annual Inspection, Repair and Cleaning compliance statement goes to tenants and to your insurance carrier (Vermont Department of Health). Include it with your application.
Does landlord insurance cover flood damage in Vermont?
Not under the regular policy. Rising water is left out of Vermont dwelling and homeowners forms, so owners add a separate flood policy, either from the National Flood Insurance Program, which we write through Selective, or from a private flood market like Neptune Flood, Beyond Floods or Flow Flood. The federal dwelling form pays nothing for lost rent or for what tenants own (FEMA dwelling policy); if rent income is the worry, compare the private forms.
I rent my ski condo by the week in winter. Is that a landlord policy?
Not a standard long-term one. Weekly rentals meet Vermont’s short-term rental definition (18 V.S.A. §4301), and many unit-owner forms exclude or limit that use. Expect a short-term rental endorsement or a policy built for it, and check the association’s rules.
What do you need to quote a Vermont rental?
Address, year built, unit count, roof age, heating fuel, whether you live there, how units are rented, current rents, wood stoves, recent claims and your declarations page, plus the latest lead compliance statement for a pre-1978 building. Request a quote. There’s no obligation to buy. Call (603) 431-4020.
Sources
- 9 V.S.A. §4455, payment of rent; rent increases
- 9 V.S.A. §4456, tenant obligations
- 9 V.S.A. §4457, landlord obligations; habitability
- 9 V.S.A. §4458, habitability; tenant remedies
- 9 V.S.A. §4459, minor defects; repair and deduct
- 9 V.S.A. §4460, access
- 9 V.S.A. §4461, security deposits
- 9 V.S.A. §4462, abandonment; unclaimed property
- 9 V.S.A. §4467, termination of tenancy; notice
- 18 V.S.A. §1751, lead definitions (target housing)
- 18 V.S.A. §1759, RRPM activities; compliance statement
- Vermont Department of Health, Inspection, Repair and Cleaning practices
- Vermont Attorney General, lead in housing
- 18 V.S.A. §4301, definitions (short-term rental)
- Vermont Department of Health, Town Health Officer manual: rental housing (2026)
- Vermont Division of Fire Safety
- Vermont Department of Financial Regulation, flood recovery resources
- Flood Ready Vermont, flood insurance
- Vermont Public, “Why do so few Vermonters have flood insurance?” (Sept. 27, 2023)
- FEMA, NFIP Dwelling Policy form (2021)
- FEMA Flood Map Service Center
- U.S. Census Bureau, ACS 2024 5-year, B25003, B25004, B25032, B25036, B25117 (Vermont and Burlington)
General information for Vermont rental owners only. Nothing here is legal advice, an offer of coverage or proof of insurance; the policy wording and the carrier’s underwriting control, and state law and rules get amended. To talk through a specific building, call (603) 431-4020.