Short-Term Rental Insurance in Vermont

By Jon Merwin, Founder and CEO, Licensed Insurance Advisor

Vermont has a long tradition of renting out the family place. A slopeside condo at Stratton or Okemo, a renovated barn outside Woodstock, a farmhouse near Manchester rented for foliage weekends and a lake camp in the Northeast Kingdom all bring in guests who have never seen the property before. That income is welcome, but the insurance has to be built for strangers sleeping in the house, not only for the owner’s family.

Portsmouth Atlantic Insurance, a family-owned independent agency founded in 2005, writes Vermont property from our Portsmouth, NH office by phone and email. We compare 40+ carriers, and our Vermont home and rental markets include Vermont Mutual, Liberty Mutual, Concord Group, Hanover and Foremost, along with specialty short-term rental coverage. Call (603) 431-4020 or write to insure@portsmouthatlanticins.com.

Our clients have posted 1,000+ Google reviews and over 2,000 testimonials about us, and we are proud to be New Hampshire’s highest-rated agency on Google. PAI is licensed in 10 states, Vermont among them.

Three questions that decide the right Vermont policy

Carriers sort Vermont rentals by a few facts. Answer these honestly before you shop and the quote will hold up when you have a claim.

• Do you live there? A primary residence rented while you travel can sometimes stay on a homeowners policy with a home-sharing endorsement. A second home that you visit and rent out is a different risk and usually moves to a seasonal, dwelling or rental form.
• How many nights do guests stay each year? A handful of foliage weekends is one thing; a full ski season plus summer is a business. The more nights, the more likely a policy written specifically for vacation rentals, such as Proper Insurance, is the fit.
• Who is responsible when something goes wrong? Underwriters ask whether you, a family member, a local caretaker or a management company handles check-ins, cleaning and storm checks, and how quickly someone can reach the house.

For homes you don’t rent, start with our Vermont homeowners and second home insurance page or the Vermont ski house insurance guide. Long-term tenants are covered on landlord insurance in Vermont.

What Vermont law asks of short-term rental operators

Health statute: definition, posting and self-certification

Subchapter 7 of 18 V.S.A. chapter 85 gives the Department of Health authority to inspect short-term rentals and the operator’s records. Section 4467 requires the operator to post, inside the unit, a telephone number for the person responsible for it and contact information for the Department of Health and the Division of Fire Safety. Section 4468 directs the two agencies to publish a packet on the health, safety and financial obligations of operators, and the law itself says the packet should stress reviewing property and liability insurance options with your insurance company. The packet includes a self-certification form that you complete and keep at the property rather than file with the state.

Fire safety guidance in every listing

Under 20 V.S.A. § 2678, in effect since June 17, 2024, the Division of Fire Safety prepares guidance on health, safety, sanitation and fitness for habitation. Platforms must make it available to hosts, and each operator must post it in a conspicuous place in the rental and provide it as part of every listing. Separately, 20 V.S.A. § 2730 defines a building in which people rent accommodations, overnight or longer, as a public building, which puts a rental under the Division’s fire and building safety rules.

The Division of Fire Safety checklist

The state’s short-term rental self-certification form and fire safety sheet lists what the Division expects. Many of the same items come up in insurance inspections and applications:

• Photoelectric smoke alarms inside each sleeping room, near the sleeping rooms and on every level, including the basement.
• Carbon monoxide alarms outside each sleeping area, plus one in any bedroom with a fuel-burning appliance.
• A primary and a secondary way out of every sleeping room; a window that meets rescue and ventilation rules can serve as the second.
• Guards and intermediate rails on decks, porches and landings more than 30 inches above grade, and graspable handrails on all stairs.
• Ground fault outlets in bathrooms, kitchens near the sink, garages, unfinished basements and outdoors.
• Oil, gas, wood, pellet and kerosene heating systems cleaned and maintained, and inspected at least once in any two-year period by a certified technician or, for solid fuel, a chimney sweep.

Rooms tax and the short-term rental surcharge

Vermont rooms tax applies to short-term rentals, and 32 V.S.A. § 9301 adds a short-term rental impact surcharge created by Act 183 of 2024, effective for rents collected on or after August 1, 2024. The Department of Taxes explains that online rental platforms are responsible under Vermont law for collecting and remitting the rooms tax, any local option tax and the surcharge on their bookings, while hosts who also take direct bookings must register and file through myVTax. The same page notes that a short-term rental needs no Health Department lodging license if two or fewer units are offered and no food is prepared for guests. The state’s checklist also asks operators to display the meals and rooms license in each unit if they hold one.

Town rules: the Stowe example

Several Vermont towns regulate short-term rentals locally. Stowe’s Short-Term Rental Registry Ordinance, adopted in March 2026, is a good example of what a resort town may ask:

• Register each unit with the town before renting it, and renew each year; a registration runs through April 30.
• Name a Designated Responsible Person who can respond in person within three-quarters of an hour when the fire or police department calls, and post that person’s phone number in the unit.
• Give the Stowe Fire Department year-round, around-the-clock access, for example through a department-approved lock box.
• A new owner must file a fresh registration within 30 days of the deed being recorded.

Those same habits, a reachable caretaker and quick access for firefighters, are what insurers want to see. Before you list in Woodstock, Manchester, Killington, Dorset or anywhere else, call the town office and read the zoning bylaw.

Vermont risks that shape a rental policy

• Burst pipes in an empty house. A ski house that sits vacant midweek in January is a frozen pipe claim waiting to happen. Low-temperature sensors, an automatic water shutoff and a caretaker who checks after a cold snap are often what underwriters ask about first.
• Snow load and ice dams. Mountain roofs carry heavy snow. Collapse from snow and ice weight is a covered peril on most forms, and roof raking and clear gutters reduce ice dam leaks.
• Wood heat. Many Vermont rentals have a wood or pellet stove. Some owners leave clear instructions and a metal ash can; others lock the stove for guest stays. Either way, tell the carrier, and keep the inspection records the state checklist calls for.
• Wells, septic and propane. Rural rentals depend on a well pump, a septic system and often a propane tank. Equipment breakdown and service line endorsements help with the failures a base policy leaves out.
• Flood. River flooding in July 2023 and again in July 2024 damaged homes far from the ocean, and Vermont responded with the Flood Safety Act, described on our Vermont high-value home insurance page. No property policy covers flood. Our flood markets in Vermont are Selective for NFIP policies and, for private flood, Aon Edge, CatCoverage, Neptune Flood, Beyond Floods, Flow Flood and The Flood Insurance Agency; see our flood insurance page.

Guest liability, amenities and umbrellas

A hot tub on the deck, a sauna, a swimming pond, a canoe at the lake camp or a sledding hill behind the farmhouse is part of what guests book, and each one is a liability exposure. Read the rental policy for amenity exclusions and confirm the liability limit fits the property. Snowmobiles, ATVs and boats that guests use need their own coverage; see our Vermont boat insurance and powersports insurance pages. A personal umbrella can add limits above the rental liability, but many umbrellas restrict rental activity, so the umbrella carrier must know about the rental. Our umbrella insurance page explains how the layers stack.

Ownership, managers and lenders

Vermont second homes are often held by an LLC, a trust or several siblings. The named insured should match whoever holds title, and each co-owner who uses the house should be listed. If a property manager runs bookings, ask for proof of its liability insurance and a written agreement that covers storm checks and guest emergencies. A mortgage lender will need to be shown on the policy, and some lenders have their own rules on rental use.

Carriers for Vermont short-term rentals

For houses rented through much of the year, Proper Insurance, a vacation rental specialist, can be written in Vermont as in every state where we hold an appointment. For owners who rent only a few weeks, we ask our Vermont home carriers, Vermont Mutual, Liberty Mutual, Concord Group, Hanover and Foremost, whether the rental can stay on a home or dwelling policy, since each has its own limits on nights and occupancy. Flood and umbrella coverage are placed alongside, and we line the policies up so the limits and named insureds match.

Request a Vermont short-term rental quote

Send us the address, the number of nights you rent, who looks after the place and the amenities guests can use. We shop 40+ carriers for a policy suited to how the house actually runs, we don’t charge additional fees, and if a season ends in a claim, we work it with you until it is resolved. Request a quote. There’s no obligation to buy. Use the form below or the quotes page, or call (603) 431-4020; our hours are 9 to 5 Monday through Thursday and 8 to 4 on Fridays, Eastern time. To hear from other owners, read our client feedback.

Frequently asked questions

What counts as a short-term rental under Vermont law?

Vermont’s health statute defines a short-term rental as a furnished house, condominium or other dwelling room or self-contained unit rented to the transient, traveling or vacationing public for fewer than 30 consecutive days and for more than 14 days per calendar year. The Department of Taxes uses the same definition for the short-term rental surcharge.

Will my Vermont homeowners policy cover Airbnb guests?

Do not assume it will. A homeowners policy is built around a family living in the home, and many limit or exclude claims that arise from renting to paying guests. If you rent only a few weeks a year, an endorsement may solve it. If the house is rented through the ski season or the summer, a dwelling or specialty short-term rental policy is usually the better fit.

What does Vermont require me to post inside the rental?

State law requires a telephone number for the person responsible for the unit, plus contact information for the Department of Health and the Division of Fire Safety. Since June 2024, operators must also post the Division of Fire Safety’s short-term rental guidance in a conspicuous place and include it with every listing. Your town may add its own posting rules.

Does the Division of Fire Safety have authority over my rental?

Yes. Vermont treats a building in which people rent accommodations as a public building under its fire safety law. The Division’s checklist covers smoke and carbon monoxide alarms, a second way out of every bedroom, guards on high decks, handrails, ground fault outlets, and periodic inspection of oil, gas and wood heating systems.

Is flood damage at a Vermont rental covered?

Not by a homeowners, dwelling or short-term rental property policy. Flood needs its own policy, through the National Flood Insurance Program or a private flood carrier. The July 2023 and July 2024 floods reached ski and resort towns as well as river valleys, so ask about flood even if your lender does not require it.

Do I need to register with my town?

It depends on the town. Stowe adopted a short-term rental registry ordinance in March 2026 that requires registration before renting, a designated responsible person and Fire Department access to the property. Other towns have their own registries, permits or zoning rules, so check with the town office before you list.

What information do you need to quote a Vermont short-term rental?

Tell us the town and address, how many nights a year you rent, whether you or a manager handle guests, the heating system and when it was last serviced, whether the house has a wood stove, hot tub, pond or dock, and how the property is owned. Your current declarations page helps too. Request a quote. There’s no obligation to buy. Email insure@portsmouthatlanticins.com, use the form on this page, or phone (603) 431-4020.

Sources

• 18 V.S.A. chapter 85, Food and Lodging Establishments, including subchapter 7, Short-Term Rentals (Vermont General Assembly)
• 20 V.S.A. § 2678, Short-term rentals; health and safety disclosure
• 20 V.S.A. § 2730, Definitions (public building)
• 32 V.S.A. § 9301, Short-term rental impact surcharge
• Vermont Department of Taxes, Short-Term Rentals
• Vermont Departments of Taxes and Health and Division of Fire Safety, Short Term Rental Safety, Health and Financial Obligations
• Town of Stowe, Short-Term Rental Registry Ordinance (March 2026)

We wrote this as a general guide for Vermont vacation rental owners, not as legal or tax advice. Nothing here amends a policy: what is paid turns on the form, its endorsements and each carrier’s underwriting. Laws, ordinances and tax rules shift over time, so check current requirements with your town office and the state agency involved. To discuss your own property, call (603) 431-4020.