Key Takeaways
- Virginia law requires insurers to provide specific notice periods for cancellation and non-renewal of homeowners policies
- The Virginia Property Insurance Association (VPIA) provides coverage for high-risk properties that cannot obtain coverage in the voluntary market
- Virginia requires a 10-day free look period for property insurance policies
- Insurers must provide 45 days notice for non-renewal of homeowners policies
- Virginia law prohibits unfair discrimination in property insurance underwriting
Virginia Homeowners Insurance Requirements
Virginia has specific property insurance regulations that protect consumers and ensure adequate coverage availability.
Free Look Period
Virginia provides a 10-day free look period for property insurance:
- Policyholder can return for full premium refund
- Begins when policy is delivered
- No questions asked, no penalty
- Applies to new property insurance policies
Virginia Property Insurance Association (VPIA)
The Virginia Property Insurance Association (VPIA) provides basic property insurance for high-risk properties:
What VPIA Covers
| Coverage | Included |
|---|---|
| Fire and Lightning | Yes |
| Extended Coverage | Yes |
| Vandalism and Malicious Mischief | Optional |
| Windstorm and Hail | Yes |
| Liability | No (separate policy needed) |
When VPIA Is Used
- Property located in high-risk areas
- Property has been declined by voluntary market insurers
- Property doesn't meet standard underwriting guidelines
- After major disasters when voluntary market tightens
Important: VPIA is a last resort, not a first choice. It typically provides more limited coverage than voluntary market policies.
Cancellation and Non-Renewal Requirements
Virginia has strict requirements for canceling or non-renewing property insurance:
Cancellation Notice Requirements
| Reason for Cancellation | Notice Required |
|---|---|
| Non-payment of premium | 10 days |
| Material misrepresentation | 30 days |
| Substantial change in risk | 30 days |
| Policy in effect less than 60 days | 15 days |
| Policy in effect 60+ days | 30 days |
Non-Renewal Notice Requirements
| Timeframe | Requirement |
|---|---|
| Standard Non-Renewal | 45 days before expiration |
| Reason Required | Must state specific reason for non-renewal |
| Written Notice | Must be in writing |
Disclosure Requirements
Virginia requires specific disclosures for residential property insurance:
Required Disclosures
- Coverage limits and deductibles
- Policy exclusions and limitations
- Replacement cost vs. actual cash value
- Flood insurance notice (if in flood zone)
- Cancellation and non-renewal provisions
Windstorm and Hurricane Coverage
Virginia coastal areas face unique risks:
Coastal Property Requirements
- Hurricane deductibles may apply in coastal zones
- Deductibles may be percentage-based (1%, 2%, 5% of dwelling coverage)
- Insurers must clearly disclose hurricane deductible
- Standard policies include wind coverage
Beach and Coastal Properties
- VPIA may be primary option for hard-to-place coastal risks
- Private market may impose restrictions
- Wind-only policies may be required from separate insurer
Flood Insurance
- Standard property policies exclude flood damage
- National Flood Insurance Program (NFIP) provides coverage
- Agents must disclose flood insurance availability in flood zones
- Virginia has significant coastal and riverine flood exposure
Mortgage Requirements
Most mortgage lenders require:
- Homeowners insurance as a loan condition
- Flood insurance if in Special Flood Hazard Area
- Insurance must name lender as mortgagee
- Lender may force-place insurance if borrower lapses
How many days notice must a Virginia insurer provide for non-renewal of a homeowners policy?
What does the Virginia Property Insurance Association (VPIA) provide?