Following heavy rains and flooding in the state of Vermont, the Commissioner of the Vermont Department of Financial Regulation (DFR) is preemptively allowing property and casualty insurance carriers to use individual adjusters not licensed in Vermont. This means that the DFR can permit insurers to use appraisers and adjusters who are not licensed in Vermont as the flooding is expected to lead to widespread damage. Such insurance adjusters and appraisers must be licensed in their state of residence or another state if or when the resident state does not issue such a licence. Non-resident adjusters are not allowed to designate Vermont as a home state. Vermont defines a public adjuster as “any person who investigates claims and negotiates settlement of claims arising under policies of insurance”. The insurer must also provide the names, addresses and licence information for everyone who will be adjusting or appraising. Within 90 days from the date of a claim denial, a Vermont licensed adjuster will review the denial to ensure the claim was properly adjusted. The insurer must notify the department via email of its intention to use catastrophe adjusters or appraisers and provide a list of the names, addresses and licence information for individuals who will be adjusting or appraising. The DFR has said it is not appropriate for insurers to re-rate, cancel, nonrenew, or refuse to provide insurance coverage solely due to an individual’s status as a victim or evacuee of this disaster. The department has also said it is not reasonable to change policyholders’ rating classifications or increase their rates solely because they are a victim or evacuee of this disaster. On 11 July, President Biden approved an emergency declaration for Vermont.
