Only about 12 percent of structures carry flood insurance compared to approximately 60 percent of eligible properties nationwide with National Flood Insurance Program policies.
The Vermont Department of Environmental Conservation is recognizing Flood Safety Awareness Week from March 8-14, urging property owners to check their flood risk, secure insurance, and prepare for spring flooding.
The campaign comes as Vermont enters its third spring since back-to-back catastrophic floods in July 2023 and July 2024 caused nearly $1 billion in combined damage across the state. But state and federal data reveal a persistent gap between official recommendations and on-the-ground reality: despite two years of devastating losses, Vermont’s flood insurance uptake remains among the lowest in the nation.
The State’s Message
“Our state’s floodplains slow down the water in our rivers, thus playing a critical role in protecting our families, friends, and properties,” DEC Commissioner Misty Sinsigalli said in the press release. “It’s important for us to refresh our awareness of the many functions and values of Vermont’s floodplains and to continue our work for flood safety.”
The department recommends that Vermonters check whether their property is in a Special Flood Hazard Area using the Vermont Flood Ready Atlas or FEMA’s Flood Map Service Center, work with insurance agents to obtain flood coverage, and verify their town’s participation in the National Flood Insurance Program. About 90 percent of Vermont communities participate in the NFIP, making federally-backed flood insurance available to residents in those towns.
Insurance Uptake Remains Low
The gap between availability and adoption is substantial. Statewide, flood insurance uptake hovers between 1 and 2 percent of households, according to Vermont Department of Financial Regulation Commissioner Kevin Gaffney. As of late 2023, there were just over 3,000 active National Flood Insurance Program policies across the state—in a state with roughly 10,000 structures located in federally-mapped high-risk flood zones.
Within those designated Special Flood Hazard Areas, only about 12 percent of structures carry flood insurance, according to Vermont Flood Ready data. That compares to approximately 60 percent of SFHA properties nationwide with NFIP policies.
The financial stakes are significant. FEMA disaster grants averaged about $7,200 per Vermont household following the July 2023 flood, while flood insurance claim payouts nationally averaged more than $40,000. Without insurance, Vermonters recovering from flood damage are largely dependent on federal disaster assistance—which requires a presidential disaster declaration and typically covers only a fraction of actual losses.
Cost Barriers and Rising Premiums
One significant factor in low uptake is the cost of coverage—and prices are climbing. Under FEMA’s Risk Rating 2.0 system, which took effect in 2021, average flood insurance costs for Vermont policyholders are projected to nearly double over the coming years. The new system bases premiums on property-specific risk factors rather than relying primarily on flood zone maps, resulting in substantial increases for many policyholders.
The cost trajectory has already prompted some property owners to drop coverage. One Montpelier business owner told Vermont Public that her premium increased from approximately $1,500 to $8,000 annually, leading her to cancel the policy before the 2023 flood destroyed her inventory. As of December 2025, the average NFIP policy in Vermont costs $1,489 per year—but that average masks wide variation based on location and risk factors.
Flood insurance policies also carry a 30-day waiting period before coverage takes effect, meaning property owners cannot obtain protection once a flood warning has been issued.
Maps Don’t Capture Full Risk
The official flood maps that determine insurance requirements and risk awareness are, in many cases, decades out of date. FEMA is currently updating Flood Insurance Rate Maps across Vermont—the first comprehensive update for many towns since the 1970s or 1980s. The new maps may not take effect in some counties until 2027.
The limitations of current mapping are measurable. A 2020 analysis by the First Street Foundation identified approximately three times as many Vermont properties facing substantial flood risk as FEMA’s maps showed—roughly 39,000 properties compared to FEMA’s 13,000. The Vermont Department of Financial Regulation found that 35 to 40 percent of flood insurance claims following the July 2023 flood were for properties located outside the mapped Special Flood Hazard Area.
Vermont also lacks a mandatory flood risk disclosure law for real estate transactions—placing it among a minority of states without such requirements. A 2022 FEMA analysis found that states with stronger flood disclosure requirements tend to have higher rates of flood insurance uptake, as buyers are more likely to understand their risk before purchasing.
Recovery From 2023-2024 Continues
The awareness campaign arrives as many Vermont communities remain in active recovery from recent floods. Up to 200 of Vermont’s 247 cities and towns reported flooding in 2023 and 2024, with combined damage estimates approaching $1 billion in public infrastructure alone. The July 2024 flooding from Tropical Storm Beryl struck exactly one year after the 2023 event, destroying infrastructure that had just been repaired.
“We’ll be wrestling with this for years to come,” one local official told VTDigger in July 2025. Dozens of towns remain in what reporters described as “red ink and repairs,” with uncertain federal reimbursement timelines and ongoing FEMA bureaucratic delays.
The state’s chief recovery officer, Douglas Farnham, acknowledged the long timeline: “We’ve said from the beginning this is a long process. We still have a lot of progress to make.”
Federal Funding Uncertainty
Vermont’s flood resilience efforts face additional uncertainty from ongoing disputes over federal disaster funding. Attorney General Charity Clark and a coalition of 23 states are engaged in active litigation over the Trump administration’s attempt to terminate FEMA’s Building Resilient Infrastructure and Communities program, which had allocated more than $5 million for 36 Vermont flood prevention projects.
A federal court ruled in December 2025 that FEMA’s termination of the BRIC program was unlawful and ordered the agency to restore funding. However, as of February 2026, Clark filed a motion asking the court to enforce its order, stating that FEMA had not complied and that regional offices indicated the agency was taking a “wait and see” approach.
Separately, FEMA has announced significant workforce reductions that former agency leaders warn will extend recovery times for disaster-impacted communities. Vermont was specifically cited among states still recovering that could face delayed federal assistance. The administration has signaled intentions to shift preparedness responsibilities increasingly to states, and President Trump has repeatedly called for restructuring or eliminating FEMA as it currently exists.
What Happens Next
Vermont enters spring 2026 with the familiar conditions that produced flooding in each of the past two years: snowpack in the mountains, saturated soils in many areas, and the potential for rapid spring rainfall. The state’s infrastructure remains partially rebuilt, federal funding pathways remain contested in court, and the vast majority of properties—including many that flooded in 2023 and 2024—remain without flood insurance protection.
For Vermonters considering flood insurance, the 30-day waiting period means coverage purchased today would not take effect until early April. The DEC’s recommended resources for checking flood risk include the Vermont Flood Ready Atlas and FEMA’s Flood Map Service Center. Property owners can contact their homeowner’s insurance agent for flood coverage quotes, or call the NFIP directly at 877-336-2627.
Updated FEMA flood maps are expected to take effect in some Vermont counties beginning in 2027, potentially changing flood zone designations and insurance requirements for thousands of additional properties. Communities that have not updated their flood hazard bylaws to meet current NFIP standards risk losing access to federal flood insurance for their residents when the new maps take effect.