Fix and Flip Insurance Vermont
Last updated: October 16, 2025
"The first rule in investment is don't lose and the second rule in investment is don't forget the first rule." - Warren Buffett
Fix and flip insurance, often referred to as renovation or builder’s risk insurance, is a specialized policy crafted for real estate investors in Vermont who purchase properties to renovate and resell for profit. Unlike standard homeowners insurance, this policy addresses the unique challenges of vacant properties, construction risks, and frequent ownership changes common in fix and flip and BRRRR projects.
Whether you're a first-time investor in Montpelier or a seasoned flipper managing multiple renovations across Burlington and Rutland, fix and flip insurance is essential for safeguarding your investment capital, mitigating liability exposure, and ensuring your resale timeline stays on track.
In Vermont, fix and flip insurance premiums have seen a notable increase, rising over 25% in the past 18 months. This surge directly impacts your profit margins and the viability of your deals. Our analysis indicates that typical fix and flip policies are often quoted nearly 33% higher than necessary, based on lender guidelines and investor risk management preferences.
This discrepancy arises because many real estate investors obtain their fix and flip insurance from agencies that lack specialization in commercial insurance policies. Moreover, these agencies may be incentivized to sell more expensive policies, as their compensation is often a percentage of your premium. Even well-meaning agents can provide uncompetitive quotes due to being captive to a single carrier or lacking specialization.
To address this, we developed the OfferMarket Insurance rate shopping platform. In under a minute, you can compare quotes from over 40 carriers to secure the best coverage at the lowest possible price. Our expert team, specializing in saving money for 1-4 unit residential real estate investors, quality-controls your quote. Each month, we save thousands of dollars for our clients, and we're eager to help you save too!
Fix and Flip Insurance Markets
Wherever your rehab project is located in Vermont, we've got you covered.
- Fix and Flip Insurance Alabama
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- Fix and Flip Insurance Arizona
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- Fix and Flip Insurance Connecticut
- Fix and Flip Insurance Delaware
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- Fix and Flip Insurance New Hampshire
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- Fix and Flip Insurance New Mexico
- Fix and Flip Insurance New York
- Fix and Flip Insurance North Carolina
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- Fix and Flip Insurance Ohio
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- Fix and Flip Insurance Rhode Island
- Fix and Flip Insurance South Carolina
- Fix and Flip Insurance South Dakota
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- Fix and Flip Insurance Texas
- Fix and Flip Insurance Utah
- Fix and Flip Insurance Vermont
- Fix and Flip Insurance Virginia
- Fix and Flip Insurance Washington State
- Fix and Flip Insurance Washington State
- Fix and Flip Insurance West Virginia
- Fix and Flip Insurance Wisconsin
- Fix and Flip Insurance Wyoming
Fix and Flip Insurance Vermont: Coverage Areas
Wherever your Vermont rehab is based, our insurance network has you covered:
- Burlington
- South Burlington
- Rutland
- Barre
- Montpelier
- St. Albans
- Winooski
- And beyond
Our specialized coverage spans the diverse landscapes and neighborhoods unique to Vermont.
Why You Need Fix and Flip Insurance in Vermont
1. Vacant Properties Are High Risk
In Vermont, many fix and flip projects commence with vacant properties. Standard insurance policies often exclude or void coverage on unoccupied homes due to heightened risks such as vandalism, theft, and undetected damage (e.g., burst pipes, electrical fires).
2. Construction and Renovation Risks
Whether you're replacing a roof in Barre, rewiring electrical systems in Brattleboro, or gutting a kitchen in St. Albans, the renovation process introduces risks like:
- Structural damage
- Contractor injuries
- Fire hazards
- Materials theft
Fix and flip insurance is tailored to these risks, providing coverage during all phases of the rehab.
3. Liability Protection
If a contractor or trespasser is injured on your Vermont job site, you could be held personally liable. A proper policy includes general liability coverage to protect you from lawsuits and medical expenses.
What Does Fix and Flip Insurance Cover?
Fix and flip insurance policies are highly customizable. Here are common types of coverage included or optionally added:
Property Coverage
Protects the structure and materials from risks like:
| Covered Risks |
|---|
| Fire |
| Theft |
| Vandalism |
| Wind/hail (a major concern in North and West Texas) |
| Lightning |
| Water damage (non-flood) |
General Liability
Covers bodily injury or property damage claims filed by third parties, including:
- Slip and fall incidents
- Injuries to contractors or trespassers
- Damage to neighboring properties
Builder’s Risk
Often bundled with property coverage, builder’s risk covers the structure under renovation, materials in transit or storage, and newly installed features.
Vacant Property Endorsement
Ensures your policy remains valid even when the property is unoccupied during renovations.
Tools and Equipment
Optional coverage for tools or rented machinery stolen or damaged on-site.
Ordinance or Law Coverage
Covers additional costs to bring the property up to code after a loss, including demolition and rebuilding expenses.
Loss of Rents
Sometimes bundled into a fix and flip insurance policy and typically included in a landlord insurance policy, Loss of Rent or “business interruption” coverage protects against lost rental income due to a covered loss if you rent the property after completing your rehab or keep the property rented during your rehab. This is most relevant to BRRRR investors and multi-unit properties.
What is NOT Covered?
- Wear and tear or poor workmanship
- Flood damage (requires separate flood insurance)
- Earthquake damage (often excluded or requires a separate rider)
- Intentional damage or fraud
- Acts of war or government seizure
Always read the exclusions section of your policy and discuss with your insurance agent.
Who Needs Fix and Flip Insurance?
Fix and flip insurance is appropriate for:
- Individual real estate investors
- House flippers
- Real estate LLCs and partnerships
- Wholesalers who take title before resale (i.e., double close)
- Private lenders protecting collateral
Whether you're flipping a $150,000 farmhouse in Middlebury or a $500,000 colonial in Burlington, fix and flip insurance should be considered a risk management necessity.
How Much Does Fix and Flip Insurance Cost in Vermont?
Premiums vary depending on:
- Location
- Property value
- Scope of work (“SOW”, “rehab budget”, “scope of repairs”)
- Length of project
- Coverage limits
- Deductibles
Example rates:
| Property Value | Rehab Budget | Estimated Annual Premium |
|---|---|---|
| $150,000 | $50,000 | $1,000 – $2,000 |
| $300,000 | $100,000 | $1,500 – $2,500 |
| $500,000 | $200,000 | $2,000 – $3,500 |
Note:
Annual insurance premiums are generally refunded on a pro-rated basis if you cancel the policy prior to policy term expiration. The most common reasons are either because of sale or refinance (i.e., DSCR loan) and switch into a landlord insurance policy.
Bundling multiple properties under one policy (“portfolio policy”) can reduce your per-property cost.
Best Fix and Flip Insurance in Vermont
You have many choices when shopping for fix and flip insurance. Ultimately, your selection comes down to the risks you are willing to accept, the price you are willing to pay, the competitiveness of your rate shopping process, and the helpfulness of your agent and client service team. We recommend a comprehensive fix and flip insurance policy that includes property insurance, general liability insurance, business interruption insurance and, if necessary, flood insurance.
Working with an insurance agency that specializes in fix and flip insurance and has access to many carriers will get you the best coverage at the best price. Get your fix and flip insurance quote today!
How to Get Fix and Flip Insurance Through OfferMarket
OfferMarket streamlines the process of obtaining fix and flip insurance by connecting you with specialized underwriters who understand real estate investing.
The OfferMarket Advantage:
- Fast quotes within 24 hours
- Custom policies for 1-100+ properties
- Support for various title-holding entities: personal name, LLC, C-Corporation, S-Corporation, Revocable Trust, Land Trust, LP
- Support for highly specific lender guidelines
- Competitive pricing via top-rated carriers
- Easy COI generation (proof of insurance)
- Secure record keeping in your secure Insurance File
Insurance Requirements for Fix and Flip Loans
In Vermont, lenders funding your fix and flip projects whether it’s a weather-worn duplex in Barre or a historic four-square in St. Johnsbury—will typically require the following insurance coverage to protect their collateral and ensure your project aligns with underwriting standards.
Most lenders will require:
- Property coverage at least equal to the loan amount
- General liability ($1M+ per occurrence is typical)
- Named insured and loss payee clauses
- Proof of insurance before closing
- Ongoing coverage during the loan term
Failing to maintain proper insurance on your Vermont flip could lead to:
- Loan default
- Forced-placed insurance (often at higher cost and with worse coverage)
- Personal liability for damages
OfferMarket makes this process seamless by coordinating with your lender both during underwriting and after closing. And if you’re working with OfferMarket Capital for your fix and flip or DSCR loan, the process is even more streamlined.
How to Structure Coverage for a Multi-Property Portfolio
If you’re flipping multiple properties across Vermont from ski towns like Killington to lakeside neighborhoods in Colchester it pays to structure your insurance efficiently.
- Blanket policies: Cover all your properties under one policy
- Scheduled policies: List each property with separate limits and premiums
- Master policies: Combine various coverages (vacant property, builder’s risk, etc.) into a single package
OfferMarket helps Vermont-based high-volume flippers optimize insurance costs and simplify administration across their portfolios.
Fix and Flip Insurance Checklist
Use this checklist to ensure your Vermont fix and flip project is fully protected:
| Requirements | Status |
|---|---|
| Property insurance covers full replacement cost | ✅ |
| General liability of at least $1M | ✅ |
| Vacant property endorsement included | ✅ |
| Builder’s risk for renovation phase | ✅ |
| Tools/equipment coverage (if needed) | ✅ |
| Policy names your lender as loss payee | ✅ |
| Flood/earthquake insurance if required | ✅ |
| Start/end dates match your project timeline | ✅ |
| Certificate of insurance issued and stored | ✅ |
Fix and Flip Insurance Guidelines
Below are common insurance guidelines accepted by Vermont lenders for fix and flip (hard money) loans.
Property Coverage
| Requirements | Details |
|---|---|
| Mandatory | Yes |
| AM Best Rating | A- VIII or greater |
| Term | 1 Year |
| Limits | Replacement Cost or Loan Amount (if less, must be Agreed Value Policy or have zero coinsurance) |
| Deductible | $5,000 |
| Accepted Policy Types | Dwelling Fire (“Special Form”), Commercial Property (“Basic” or “Special Form”) |
| Cancellation | 30-day notice |
| Exclusions | No windstorm/hail or named storm exclusions |
| Lender's Designation | Mortgagee |
General Liability Coverage
| Requirements | Details |
|---|---|
| Mandatory | Yes |
| AM Best Rating | A- VIII or greater |
| Term | 1 Year |
| Limits | $1,000,000 per occurrence, $2,000,000 aggregate |
| Deductible | $1,000 |
| Coverage Details | Occurrence basis (not claims-made) |
| Cancellation | 30-day notice |
| Lender's Designation | Additional Insured |
Business Interruption Insurance
| Requirements | Details |
|---|---|
| Mandatory | Yes |
| AM Best Rating | A- VIII or greater |
| Term | 1 Year |
| Limits | One year of effective gross rental revenue |
| Coverage Details | Actual Loss Sustained basis acceptable |
| Cancellation | 30-day notice |
| Lender's Designation | Mortgagee |
Flood Insurance
| Requirements | Details |
|---|---|
| Mandatory | If in FEMA flood zone |
| AM Best Rating | A- VIII or greater |
| Term | 1 Year |
| Limits | Greater of $250,000 or loan balance |
| Cancellation | 30-day notice |
| Lender's Designation | Mortgagee |
Additional Details
Lenders require their mortgagee clause on your policy, such as:
| Requirements | Vermont Specific Fix and Flip Insurance Details |
|---|---|
| Mortgagee Clause | OfferMarket Capital LLC ISAOA/ATIMA 627 S Hanover St Baltimore, MD 21230 |
| Condos | - Blanket policy may be used if it includes the individual unit - HOA must maintain “all risk” coverage at 100% of insurable value for common areas, fixtures, personal property, and equipment |
| PUDs (Planned Unit Developments) | - Project’s blanket policy must include the individual unit - HOA should maintain “all risk” coverage for common areas, fixtures, personal property, and equipment |
| ACORD Form | Required to ensure compliance |
| Pre-Closing Requirement | Submit insurance certifications, invoices, or paid receipts no later than 24 hours before closing |
| Post-Closing Requirement | Send final policy documents no later than 60 days after closing |
| Vacancy Notification | Borrower must notify the carrier if a property becomes vacant; a vacancy permit is required for the entire period of vacancy |
Why Choose OfferMarket for Fix and Flip Insurance?
OfferMarket is a trusted partner for Vermont real estate investors and private lenders. We don’t just simplify property acquisition and financing we also streamline insurance procurement to eliminate friction from every step of your deal.
What Sets Us Apart:
- Real-time deal and insurance management platform
- Dedicated support team for investors
- Integrated insurance, lending, and off-market deal flow
- No wasted time shopping carriers—we do it for you
- Smart matching with investor-friendly insurers
Frequently Asked Questions
Do I need insurance before closing on a flip?
Yes. Your lender (or title company, if buying with cash) will require proof of insurance before closing. OfferMarket can issue a certificate of insurance within hours.
Can I get insurance if the property is already under renovation?
Yes. You’ll need to disclose all existing renovation work. Some insurers may require an inspection or restrict certain types of coverage mid-project.
What if I sell the property early?
You can cancel the policy and receive a pro-rated refund for the unused premium.
Can I insure multiple flips under one policy?
Yes. OfferMarket offers portfolio policies that help Vermont investors save money and simplify multi-property management.
What if I’m also renting out a unit before the flip?
Depending on the insurance carrier, fix and flip insurance may not cover active tenants. You may need a landlord or hybrid policy that accommodates temporary occupancy.
How does OfferMarket Insurance work?
We’re a rate-shopping platform tailored for real estate investors. We gather quotes from top carriers, ensuring your policy meets both your preferences and your lender’s guidelines.
Can I use my preferred insurance agent?
Yes, but only if they have access to competitive fix and flip coverage and understand lender requirements. Delays and issues often arise when agents specialize only in personal (not commercial) insurance.
Can I pay for insurance on the HUD-1/ALTA statement at closing?
Yes. Most lenders allow you to pay your premium on the settlement statement or directly through your agent before closing. A paid receipt is required if you pay directly.
Do I need to escrow my fix and flip insurance premium?
Usually not. Vermont lenders generally expect you to maintain your policy independently. If your project exceeds 12 months, you’ll likely need to prove renewal. You’ll receive a pro-rated refund if you cancel early.
What is an AM Best Rating?
It’s a rating system that assesses the financial strength of insurance companies. A rating of A- VIII or better is commonly required.
What is builder’s risk insurance?
It protects the structure and construction materials during the renovation phase. Coverage typically ends when construction is complete, the property is sold, or it’s occupied.
Protect and Grow Your Vermont Portfolio with OfferMarket
Fix and flip insurance isn’t optional—it’s essential. With tight margins, aggressive timelines, and plenty of unknowns in Vermont’s real estate landscape, smart investors know that protecting the downside is just as important as chasing returns.
Whether you’re flipping one property in the Northeast Kingdom or managing a dozen in Chittenden County, OfferMarket’s insurance solutions are designed to scale with you.
Protect your capital. Protect your reputation. Protect your future.
OfferMarket is your real estate investing ally—serving Vermont rental property investors, especially 1-4 unit residential properties—with powerful tools to build long-term wealth.
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