VANGUARD FLORIDA INSURED TAX-FREE FUND
                              PROSPECTUS SUPPLEMENT

                                NOVEMBER 12, 1997

Exchange Purchase Restriction

Between  December 1, 1997, and January 1, 1998,  exchanges into Vanguard Florida
Insured  Tax-Free  Fund from any other  Vanguard fund will be limited to amounts
$500,000 or less.

This restriction is intended to prevent significant money movements into and out
of the Insured  Tax-Free  Fund by short-term  investors  attempting to avoid the
Florida  intangible  personal  property tax. Such asset  movements would make it
difficult for the Fund's adviser to maintain a competitive  yield for the Fund's
remaining longer-term shareholders.

                                                                            PS18



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