How to respond when an insurer refuses to update you or threatens to close your claim — Vermont

Short answer: Stay organized, demand written status and reasons, use Vermont’s insurance consumer resources, and preserve your rights (including speaking with an attorney if needed). This is general information and not legal advice.

Detailed answer: step-by-step action plan

If an insurance company stops communicating, gives only threats to close your claim, or refuses to provide status updates, take the following steps to protect yourself under Vermont law and to maximize the chance your claim is handled fairly.

1) Read your policy and note deadlines

Your insurance contract controls what the company must do and what you must do. Look for sections titled “timely notice,” “proof of loss,” “proof of claim,” or “loss reporting.” Note any deadlines for submitting documentation or starting a suit. Missing a policy deadline can jeopardize your rights.

2) Document everything

Keep a clear record of all communications: dates, times, the person you spoke with, what they said, and copies of emails, texts, and letters. Save claim numbers, adjuster names, estimates, photographs, receipts, and any written offers.

3) Request a written status update and explanation

Tell the insurer in writing that you want a current status, the reason for any delay, and the steps needed to keep the claim open. Send this by email and by certified mail (or another trackable method). A short template you can adapt:

“I am writing regarding Claim #[your claim number]. Please provide a written status update, the reason for any delay, and any outstanding information you need from me. Please do not close or deny the claim without notifying me and explaining my rights. — [Your name, address, phone, date]”

4) Ask for the basis if the carrier threatens to close

If the insurer threatens closure, ask for the specific policy provision or legal reason and a written explanation of what you must provide to prevent closure. If they cite an inspection, request a copy of the inspection report and the adjuster’s notes.

5) Use Vermont’s consumer insurance resources

If the company still refuses to update you or behaves unfairly, you can file a complaint with the Vermont Department of Financial Regulation (DFR). The DFR will accept consumer complaints and can help mediate or investigate insurer conduct. Find consumer information and complaint options on the Vermont DFR website: https://dfr.vermont.gov/consumer-protection.

6) Preserve and prepare evidence for a dispute

Collect all evidence showing the loss and the insurer’s conduct: photos, repair estimates, medical bills (if applicable), correspondence, witness statements, and any emergency repairs you paid for. This packet will help the regulator or an attorney evaluate whether the insurer acted improperly.

7) Consider dispute-resolution options the policy may require

Some policies contain appraisal, arbitration, or mediation clauses. Read your policy to see if you must use those methods before suing. Appraisal can be faster and less costly for property-value disputes.

8) Know when to talk to an attorney

If the insurer unreasonably refuses to communicate, threatens closure without justification, denies coverage wrongly, or you have significant damages, consult a Vermont attorney who handles insurance claims. An attorney can send a demand letter, explore bad faith or contract remedies, and advise about statute of limitations or suit deadlines.

What legal resources apply in Vermont

Insurance in Vermont is governed by state insurance law (Title 8 of the Vermont Statutes) and regulated by the Vermont Department of Financial Regulation. For an overview of Vermont insurance law, see the legislative title for insurance: https://legislature.vermont.gov/statutes/title/08. For consumer help and complaint filing, see the Vermont DFR consumer pages: https://dfr.vermont.gov/consumer-protection.

Possible remedies and outcomes

• Insurer reopens claim and resumes investigation or negotiation.
• Regulator mediation or investigation prompts a corrective action.
• Appraisal, arbitration, or mediation required by the policy resolves value disputes.
• Settlement after attorney demand or before suit.
• Court litigation for breach of contract or, in some cases, insurer misconduct. Vermont law recognizes remedies when insurers fail to perform under the policy, though outcomes depend on facts and law.

When an insurer’s conduct may amount to an unfair practice

Insurers must follow Vermont insurance law and regulations and meet reasonable standards of promptness and good faith. If an insurer ignores reasonable requests for information, repeatedly declines to provide status, or pressures you to accept a low offer without explanation, those behaviors could be unfair and worth reporting to the DFR or discussing with counsel.

Helpful hints

• Always get important communications in writing. Don’t rely only on phone calls.
• Send status requests and formal notices by certified mail with return receipt or by email with read receipt.
• Keep a running timeline of events—dates, names, and what was said or promised.
• If you make temporary repairs, keep receipts and photos. Most policies allow reasonable emergency repairs to prevent further loss.
• Be cautious about signing broad releases or accepting a “final” payment until you understand whether it resolves all claims.
• Ask for copies of reports, estimates, and communications the insurer relied on to justify closure or denial.
• Use the Vermont Department of Financial Regulation if the carrier won’t cooperate: https://dfr.vermont.gov/consumer-protection.
• If money or health is at stake, consult a Vermont attorney promptly to protect deadlines and rights.

Disclaimer: This information is educational and general. It does not create an attorney-client relationship and is not legal advice. For advice about your specific situation, consult a licensed Vermont attorney.