I would like to add a woodstove or wood-burning fireplace to my home to offset propane prices and have a heating option for power outages or whatever. My question revolves around liability. The room I'd install it in has a vaulted ceiling so the chimney installation *should* be pretty straight-forward. My fear is if my house burns down, the insurance company will try to get out of paying by saying the chimney wasn't installed professionally or whatever. Does anyone have any experience with this and/or guidance? Thanks.

Get a permit and do it to code, no problem. Think about a pellet stove  too, My friend has one loves it and it vents out the wall

This... Except pellet stoves generally need power and pellets are not Free.

 

My insurance agent (State Farm) inspected the wood stove after installation.

I installed my wood stove and 22' of 8" Selkirk double wall stove pipe and chimney.



I had the state inspector concerned with such things inspect and sign off on it which is mandatory, that was good enough for my insurance company.



It helps if you have the literature from the stove manufacturer which gives all the clearance distances, but don't rely on the listed hearth dimensions those may not grandfathered, ID has their own which extended farther than the manufacturer's.

FPNI.

Get the permit.  Get it inspected.  Keep the sticker, make a digital back up copy.  Maybe even email the digital copy to your insurance company or agent.





Make sure you understand how much having a solid fuel appliance will raise your premium before you do anything.



I replaced the chimney in my previous house, followed code and clearance to combustibles requirements, got it inspected, no big deal.

This ^^^ Your first place to check should be your insurance agent. I've heard many stories of rates exploding or being completely dropped when getting a wood-stove. OTOH, my company said, "doesn't make a difference, no changes in premiums or policy if it is installed to code". They didn't even inspect it to ensure it was installed to code.

And yes, get a wood burner if you can. I paid a bit less than $5k for my entire setup and haven't regretted it one bit. Break-even was mid-way through my 2nd burning season; I'm going into my 5th burning season now and I can't even tell you how much money it has saved me. I love cutting wood (it's therapeutic & keeps me in shape) and the money we've saved has greatly helped towards our financial freedom.

When I moved one of the questions about the new place was if it had a wood or coal stove.



It did, I took it out and moved it to the porch since it is not very well set up to use in a clean fashion.



Give me an emergency where I go through all my emergency propane and yeah I would hook it up for the emergency.



And I would give the insurance folks a call.



I rent, so keep in mind that I insure my stuff but the owner of the place tends to insure the home.

Key is to ask your insurance company so underwriting will adjust premium if needed or may say they do not want to insure you if installed.  
Insurance company bases rates on risk, and, a wood stove increases risk.
If you do not ask and have a fire caused by stove/chimney, you may not collect due to increased hazard.
If you fail to disclose wood stove on application for insurance on a new policy, and have a fire, they may also be able to deny for material misrepresentation on application.
Key is to ask and document you asked.

This.
I called my long time agent while everything was still open and easy to see.
SHowed him I exceeded min clearances, etc, and he OK'd it, IN WRITING.

(1.) What kind of stove/furnace are you currently using to burn propane, and
(2.) How much is your current monthly propane bill?