By Jon Merwin, Founder and CEO, Licensed Insurance Advisor
Vermont feels low-key, but liability claims follow people everywhere. A driver who slides through a stop sign on an icy back road in Lamoille County, a guest who falls on the stairs at a camp on Lake Champlain, a neighbor’s child hurt on a backyard sledding hill: any one can lead to a claim larger than the limits on a typical auto or home policy. A personal umbrella is the layer that sits above them.
Portsmouth Atlantic Insurance is an independent, family-owned agency founded in 2005. From our office in Portsmouth, NH, we place Vermont personal lines by phone and email, comparing 40+ carriers. In Vermont that includes umbrellas with Hanover, Liberty Mutual, Concord Group, Foremost Signature and Chubb, often sitting over a home written with Vermont Mutual or one of the others. Call (603) 431-4020 or email insure@portsmouthatlanticins.com.
Key takeaways
- An umbrella adds liability limits, and usually defense costs, above your auto, home and watercraft policies.
- Vermont requires uninsured and underinsured motorist coverage on auto policies, but most umbrellas do not extend it unless that is added.
- Under Vermont’s comparative negligence statute, an injured person can recover as long as their own fault is not greater than the defendants’, with damages reduced by their share.
- The recreational use statute shields landowners who let the public use land without charge, but not against willful or wanton misconduct, and not where access is paid.
- Carriers require minimum underlying limits. A gap between the umbrella and the policy below it can come out of your pocket.
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How an umbrella stacks over your Vermont policies
Think of liability coverage as layers. Your auto policy answers first for a crash, your homeowners policy answers first for an injury on your property, and a boat or snowmobile policy answers first for those. The umbrella waits above all of them. Once the underlying limit on a covered claim is used up, the umbrella picks up the remainder to its own limit, which is typically sold in million-dollar layers.
| Policy underneath | What the umbrella carrier will look at | Vermont note |
|---|---|---|
| Auto | Bodily injury and property damage limits on every vehicle and every listed driver | State minimum limits under 23 V.S.A. § 800 are far below what umbrella carriers require |
| Homeowners or condo | Personal liability limit on each residence, including camps and second homes | Ski houses, lake camps and farmhouses each need their own underlying policy |
| Rental property | Landlord or short-term rental liability on each rented unit | Many umbrellas limit rental exposure; disclose every rental |
| Watercraft and recreational vehicles | Liability limits on boats, snowmobiles, ATVs and golf carts | Trail riding and lake boating are common Vermont claim sources |
Our umbrella insurance page walks through the basics, and our guide to auto liability insurance explains the bodily injury limits beneath an umbrella.
Vermont laws that make limits matter
Auto minimums and uninsured motorist rules
23 V.S.A. § 800 sets Vermont’s minimum auto liability limits, which have not kept pace with the cost of a serious injury. Under 23 V.S.A. § 941, every Vermont auto policy must include uninsured and underinsured motorist coverage, and when your liability limits are above the statutory floor, your uninsured motorist limits are set at the same level unless you choose otherwise. That is why we look at liability and UM/UIM together when we raise limits for an umbrella. Most personal umbrellas are excess liability only; a few carriers offer an excess uninsured and underinsured motorist option, and we point those out.
Comparative negligence
Vermont follows modified comparative negligence under 12 V.S.A. § 1036. An injured person can still recover if their own negligence was not greater than the combined negligence of the defendants, with the award reduced in proportion to their share. When more than one defendant is found liable, the statute apportions the award among them by their share of fault. In practice, a shared-fault crash or fall can still produce a large judgment against you.
Landowners and recreational use
Vermont’s recreational use law, 12 V.S.A. § 5792 and § 5793, says an owner is not liable for injury to someone who enters land for recreation without paying, unless the injury results from the owner’s willful or wanton misconduct. Recreation is defined broadly, from hunting, fishing and skiing to snowmobiling, swimming and riding. The protection does not reach land developed for commercial recreation, and permission to use land does not by itself include permission to use structures or equipment. Owners who lease hunting rights, charge for parking or run events on their land should talk to us, because payment can change the picture.
Where Vermont umbrella claims come from
- Winter driving. Ice, snow and dark rural roads lead to serious crashes. Every driver in the home, including students home from college, needs to be listed on the auto policy beneath the umbrella.
- Guests at second homes. Ski houses and lake camps fill with friends and family. Falls on icy steps, dock injuries and hot tub accidents are common.
- Snowmobiles, ATVs and boats. Vermont’s trail network and lakes are part of daily life. Each vehicle needs its own liability policy at the limit the umbrella requires; see our Vermont boat insurance page.
- Land and animals. Horses, a dog with a bite history, a pond that neighborhood kids swim in, or trees that fall onto a neighbor’s property can all lead to claims.
- Rentals. Long-term and vacation rentals bring tenant and guest injury claims. Our Vermont landlord insurance page covers the policy beneath.
- Words and volunteer roles. Many umbrellas include personal injury coverage for libel, slander and similar claims. Nonprofit board service may need its own directors and officers policy, since personal umbrellas often limit it.
Choosing a limit
There is no formula, but four questions help. What would a court see if it looked at your home equity, investments and future earnings? How many drivers, homes, boats and sleds are on your policies? Do you host often, rent property or own land that others use? And would a claim against you draw attention because of your profession or public role? Owners with more of these exposures tend to choose higher limits. Raising the limits on the underlying auto and home policies is part of the conversation too, since the umbrella only starts where they stop.
Larger homes and estates
Owners of significant Vermont property, whether a Stowe ski home, a Woodstock estate or a Lake Champlain shoreline house, usually need higher limits and a carrier comfortable with the whole picture: several homes, collector cars, staff and frequent guests. Chubb is designed for owners with that profile, and we often pair a Chubb umbrella with Chubb home and auto. Our Vermont high-value home insurance page covers the property side, and Vermont homeowners and second home insurance covers everyday homes.
Carriers we use for Vermont umbrellas
For Vermont personal umbrellas we work with Hanover, Liberty Mutual, Concord Group, Foremost Signature and Chubb. Vermont Mutual, our lead Vermont home carrier, is often the homeowners policy underneath. Each umbrella carrier has its own rules on underlying limits, which policies it will sit above and what it excludes, such as business activities or certain rentals. We compare those details side by side, not just the limit.
Owners with homes in more than one state can read our umbrella insurance in New Hampshire page as well; one umbrella can often sit over policies in several states.
Get a Vermont umbrella quote
Gather your current declarations pages and a list of drivers, then reach out. We shop 40+ carriers to fit the umbrella to everything beneath it, we don’t charge additional fees, and when a claim comes, our team stays with you through to the payment. Request a quote. There’s no obligation to buy. Fill in the form below or visit our quotes page. Our phone, (603) 431-4020, is answered 9 to 5 Monday through Thursday and 8 to 4 on Friday, Eastern. See what clients say on the client feedback page.
Frequently asked questions
What does a personal umbrella policy do in Vermont?
It adds a layer of liability coverage above your auto, home and watercraft policies. When a covered claim uses up the limit on the policy underneath, the umbrella pays the rest, up to its own limit, and it usually pays for a lawyer to defend you as well. Many umbrellas also cover some claims the underlying policies don’t, such as certain libel or slander suits.
Who in Vermont should think about an umbrella?
Anyone with assets, a home, future earnings or a family that drives. Vermont owners with a lake camp, a pond or dock, horses, a ski house that friends borrow, land that hunters and snowmobilers cross, or teenagers learning to drive on winter roads tend to have the most exposure.
Does a Vermont umbrella cover uninsured motorists?
Not automatically. Vermont law requires uninsured and underinsured motorist coverage on every auto policy, and above the state floor it matches your liability limits unless you direct otherwise. Many umbrellas are excess liability only, so injuries caused by an underinsured driver are not covered unless the umbrella adds that protection. Ask us which carriers offer it.
If I let people hike or hunt on my land, am I protected?
Vermont’s recreational use statute limits a landowner’s liability to people who use the land for recreation without paying, unless the injury results from willful or wanton misconduct. The protection does not cover land developed for commercial recreation, and charging for access can remove it. Even a weak claim can be costly to defend, which is one reason landowners add an umbrella.
What underlying limits does an umbrella require?
Each carrier sets minimum liability limits on the auto, home and watercraft policies beneath the umbrella, and they are well above Vermont’s legal minimums for auto. If the underlying limit falls short, you may have to pay the gap yourself. We check every underlying policy when we quote.
Can I put my umbrella with a different company than my home and auto?
Sometimes. Some carriers write an umbrella only when they also write the home and auto, while others will sit over another company’s policies. Keeping everything with one carrier can make claims simpler. We will show you both options when they exist.
What do you need to quote a Vermont umbrella?
Send the declarations pages for your auto, home, any second home or rental, and any boats, snowmobiles or ATVs, plus a list of drivers with their ages and records. Tell us about pools, ponds, docks, dogs, horses, land others use and any board or volunteer roles. Request a quote. There’s no obligation to buy. Use the quote form here, email insure@portsmouthatlanticins.com, or call (603) 431-4020.
Sources
- 23 V.S.A. § 800, Maintenance of financial responsibility (Vermont General Assembly)
- 23 V.S.A. § 941, Insurance against uninsured, underinsured, or unknown motorists
- 12 V.S.A. § 1036, Contributory and comparative negligence
- 12 V.S.A. § 5792, Definitions (recreational use)
- 12 V.S.A. § 5793, Liability limited
This page explains umbrella coverage for Vermont residents and property owners in general terms. It is not legal advice, and it does not change any policy; what an umbrella pays depends on its wording, the underlying policies and each carrier’s underwriting. Statutes can be amended, so read the current text. For advice on your own situation, call (603) 431-4020.