Fire Insurance Valuations

V.S.A. tit. 8, ch. 105, subch. 3

in effect

8 V.S.A. § 3961 Valuation of property

3961. Valuation of property Whenever a fire insurance company shall write a policy covering a building in this State and shall attach thereto the so-called coinsurance clause, or any similar clause requiring the insured to carry insurance in amount equal to any percentage of the value of such building, the insured may ask for a valuation of such building insured, which valuation may be agreed upon in writing by the insuring company and the insured, and shall be the valuation of the property insured for the purpose of fixing the liability of the company during the life of the policy.

8 V.S.A. § 3962 Application to Commissioner

3962. Application to Commissioner In case the insuring company and the insured do not agree on the valuation, as provided in section 3961 of this title, the insured may file with the Commissioner a request for a valuation, which shall contain a complete description of the building showing location, the name of the company, and the agent, if any, through whom the insurance is placed and the date of the policy.

8 V.S.A. § 3963 Time and place for making valuation

3963. Time and place for making valuation Upon the receipt of such a request, the Commissioner shall appoint a time and place for making such valuation that shall be not later than 15 days thereafter, unless an earlier date is agreed upon by the parties interested, and he or she shall give proper notice thereof to all concerned.

8 V.S.A. § 3964 Appointment of appraisers to determine valuation

3964. Appointment of appraisers to determine valuation The owner of a building and the insurance company or agent shall each file with the Commissioner a list of not less than three disinterested persons competent to act as appraisers of the building described in the notice. The Commissioner shall select one person from each of the lists so submitted who shall together act as appraisers of the property, and, in case these two cannot agree, he or she shall select a third competent and disinterested person who shall act as third appraiser only as to matters regarding which the two appraisers first appointed cannot agree.

8 V.S.A. § 3965 Appraisers’ award and expenses

3965. Appraisers’ award and expenses An award in writing of any two appraisers, when filed with the Commissioner, shall determine the sound value of the building. Each of the two appraisers first appointed shall be paid by the party nominating him or her and the third appraiser shall be paid by the parties equally.

8 V.S.A. § 3966 Duration of valuation fixed

3966. Duration of valuation fixed The value of any building fixed as provided in sections 3964 and 3965 of this title shall be considered the true value of the building during the term for which any fire insurance policy is issued to cover thereon, if issued within three years from the date of such award, and such value shall continue as the basis of valuation for the purpose of ascertaining the amount of insurance required under a coinsurance clause until a new valuation has been made on an application by the insured or by the company, or agent placing the insurance thereon, provided that a new valuation shall not be required oftener than once in three years.

8 V.S.A. § 3967 Effect on rate

3967. Effect on rate The rate charged for a fire insurance policy covering a building valued in accordance with the provisions of section 3964 of this title shall not be increased above the rate fixed for the same form of policy, containing or having attached thereto a coinsurance clause, where no request has been made to have the value of the property fixed.

8 V.S.A. § 3968 Penalty for violations

3968. Penalty for violations If an insurance company violates a provision of sections 3961-3967 of this title or if the Commissioner is satisfied, after a hearing, that a company declines or refuses to write insurance on any building because of the requirement that the value of such building shall be agreed upon as provided in section 3964 of this title, the Commissioner shall suspend its authority to do business in this State for such period, not exceeding one year, as he or she may deem advisable.

Source: Vermont General Assembly (legislature.vermont.gov)URL: https://legislature.vermont.gov/statutes/chapter/08/105Fetched: 10/21/2026