Landlord Insurance Virginia

Last updated: May 24, 2025

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"The first rule in investment is don't lose and the second rule in investment is don't forget the first rule." - Warren Buffett

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Landlord insurance in Virginia is a specialized insurance product built for property owners who rent out residential or commercial real estate in the Old Dominion. Whether you lease a single-family home in Richmond, manage apartment units in Virginia Beach, or operate short-term rentals in Arlington, landlord insurance Virginia is essential for protecting your assets and handling risks unique to the region.

Unlike ordinary homeowners insurance, landlord insurance policies in Virginia address the specific exposures rental property owners face, from tenant liabilities to damages triggered by Virginia’s weather—like hurricanes along the coast or snowstorms in the Blue Ridge.

Property owners across Virginia have experienced rising insurance costs in recent years, affecting cash flow and profit margins. Our in-depth review of thousands of landlord insurance Virginia policies revealed that many landlords pay up to 25% more than needed simply due to lack of access to experienced agents or agencies that truly understand landlord policies.

That’s why we created the OfferMarket Insurance platform—to help Virginia landlords swiftly compare rates from more than 40 top insurers. Our Virginia-centric insurance experts meticulously examine every quote so you receive the best protection at the most competitive rate—helping landlords statewide save thousands each year.

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What Risks Does Landlord Insurance in Virginia Cover?

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A robust landlord insurance policy in Virginia generally shields you from:

🏠 Property damage due to fire, hurricanes, hail, vandalism, and other frequent perils
⚖️ Liability claims if someone gets hurt on your Virginia rental property
💸 Loss of rental income if your property becomes uninhabitable because of a covered event
🌊 Flood insurance (separate coverage required if your Virginia rental is in a flood risk zone)

Property Insurance

Virginia landlords must contend with risks such as hurricane-force winds in the Tidewater region, winter storms in Northern Virginia, and the ever-present threat of fire or vandalism. The property insurance portion of your landlord insurance Virginia policy covers these and can also provide temporary housing for tenants during repairs.

Property insurance in Virginia comes in three principal forms—Basic, Broad, and Special—each covering different sets of perils (risks):

Basic Form Perils

The entry-level, most budget-friendly property insurance for Virginia landlords covers just the core risks:

• 🔥 Fire

• 🌩️ Lightning

• 💥 Internal explosion

Extended Coverage (EC) Perils

Virginia landlords often use the WHARVES acronym to recall the extended perils you can add to a basic property insurance policy:

• 🌬️ Windstorm (including hurricanes that threaten coastal Virginia)

• 🦹‍♂️ Civil commotion

• 🔥 Smoke (from sudden, accidental damage)

• 🌨️ Hail (not uncommon in Virginia’s stormy seasons)

• ✈️ Aircraft

• 🚗 Vehicle impact

• 💥 Explosion

• ❗ Riot

For malicious acts, V&MM represents:

• 🏚️ Vandalism

• 🦹‍♂️ Malicious mischief

Broad Form Perils

Virginia insurance professionals use BIG AFFECT to remember added broad form risks, included along with basic and extended coverage:

• 🥷 Burglary damage

• 🧊 Ice, sleet, snow (crucial for Virginia’s winter weather in the west)

• 🪟 Glass breakage

• 🚰 Accidental discharge of water or steam

• 🧊 Freezing objects (important during cold snaps)

• ✈️ Falling objects

• ⚡ Electrical current damage

• 🏚️ Collapse

• 💥 Tearing asunder

Special Form Peril

The most comprehensive protection for Virginia landlords is “Special Form,” “open form,” or “DP-3” (common for single-family rentals). This form covers all direct physical loss risks unless specifically excluded—always check your policy’s exclusions carefully. Common exclusions in Virginia include:

• 🌊 Flooding (requires separate flood insurance, especially in flood-prone Tidewater and riverfront areas)

• 🌎 Earthquake (rare in Virginia, but can be added by endorsement)

• 🤡 Intentional damage

• ⚠️ Building code enforcement costs

• 🔌 Power interruptions off-premises

• 🇺🇸 Government seizure

General Liability Insurance

General liability insurance in Virginia protects landlords against claims if a tenant, visitor, or worker is injured or their property is damaged while on your rental property. Coverage limits often range from $100,000 to $1,000,000 per occurrence.

For example, if a tenant slips on icy stairs at your Charlottesville rental and files a lawsuit, your landlord insurance Virginia liability coverage helps with medical bills and legal costs.

Business Interruption Insurance (Loss of Rent)

Virginia landlords risk losing rental income if tenants must move out due to property damage. Business interruption insurance—part of your landlord insurance Virginia policy—replaces lost rent and helps you maintain stable cash flow during repairs.

This coverage is typically affordable in Virginia, costing about $1 per $1,000 of yearly rental income.

Flood Insurance

Given Virginia’s exposure to flooding—especially in areas along the James River, Chesapeake Bay, and coastal cities like Norfolk—flood insurance is essential if your property is in a FEMA-designated flood zone.

Virginia lenders usually require flood coverage up to $250,000. This is separate from your landlord insurance Virginia policy and is generally purchased via the National Flood Insurance Program (NFIP). You can check your property’s risk using FEMA’s Flood Map Service.

Landlord Insurance for DSCR Loans in Virginia

If your Virginia rental is financed with a Debt Service Coverage Ratio (DSCR) loan, it’s critical to meet your lender’s insurance guidelines. Virginia landlords must carry landlord insurance policies that satisfy lender criteria for loan approval.

Since insurance premiums impact your DSCR, choosing affordable yet comprehensive landlord insurance Virginia is vital to preserve cash flow and ensure loan eligibility. Typical DSCR loan insurance requirements include:

Our OfferMarket Insurance platform can guide Virginia landlords through DSCR insurance requirements, providing quotes that meet lender standards and minimize costs.

How Much Does Landlord Insurance Cost in Virginia?

The price of landlord insurance in Virginia depends on several important factors:

Location

Insurance carriers price policies using regional data. For example, rentals in hurricane-prone Virginia Beach or Norfolk may have higher premiums than properties in Roanoke or Harrisonburg. Local labor and material costs also affect rates and repair expenses.

Property Insurance Type

Virginia landlords can select Basic Form, Broad Form, or Special Form coverage. Special Form gives the most protection and is often recommended for rentals, though it comes at a higher price.

Dwelling Coverage Amount

The most significant factor in your Virginia landlord insurance premium is the amount of dwelling coverage you purchase. Insuring at the property’s full replacement cost value (RCV) is advised to avoid penalties such as coinsurance.

With rising construction costs in Virginia, regularly update your coverage limits to reflect replacement values.

Deductible

Opting for a higher deductible can reduce your annual Virginia premium. Many landlords choose deductibles of $5,000 or more to balance out-of-pocket costs and premium savings.

Claim Frequency and Severity

Insurers look at your personal claim history and that of your rental property when pricing policies. Frequent or severe claims—such as water damage from hurricanes in Eastern Virginia or wind damage in the Shenandoah Valley—can lead to higher premiums or policy limits.

Crime Score Impact

Neighborhood crime rates, especially in urban areas like Richmond, Portsmouth, or Alexandria, influence landlord insurance costs in Virginia. High crime scores mean higher risks of theft, vandalism, or liability claims—so insurers may raise premiums or add coverage limits.

Note: Crime scores may not reflect security upgrades at your property. Installing security systems or using on-site management can lower your insurance rates.

Property Condition and Maintenance

Well-maintained properties in Virginia’s variable climate typically get lower premiums. Virginia landlords should keep plumbing and HVAC systems up to date to avoid common issues like frozen pipes in winter and humidity-related mold in summer.

Older homes with outdated construction or structural issues are likely to have higher insurance costs. Document all maintenance and upgrades for your insurer to improve your policy’s terms.

How to Protect Your Rental Property in Virginia

While landlord insurance Virginia is critical, proactive steps can further shield your property:

Tenant Screening

In Virginia’s competitive rental markets—from bustling Northern Virginia to college towns like Blacksburg—thorough tenant screening is essential. Run background and credit checks for all adult applicants. Set clear minimum credit criteria, and require higher deposits or personal guarantors if exceptions are made.

Regular Maintenance

Virginia’s unpredictable weather requires diligent property care. Inspect your rental at least every quarter to identify small issues before they become major—like roof leaks, foundation cracks, or mold. Keep detailed logs and share them with your insurer for possible premium discounts.

Tenant Maintenance Education

Teach Virginia tenants simple maintenance steps: changing HVAC filters, turning off the main water valve during emergencies, and dripping faucets in freezing weather to avoid water damage.

DP-3 Insurance in Virginia

DP-3 (Special Form) coverage is the gold standard for Virginia rental properties. This policy reimburses you on a replacement cost basis for most physical damage, except for any exclusions stated in your contract.

What is Coinsurance?

Coinsurance clauses penalize Virginia landlords who insure for less than a set percentage (usually 80%) of replacement cost value. Underinsuring means you’ll cover part of the claim beyond your deductible.

Coinsurance formula

(Insurance Carried ÷ Insurance Required) × Loss = Claim Payment – Deductible

If your Virginia rental has a replacement cost of $250,000 but is insured for $125,000, and a $5,000 deductible, a $50,000 loss is paid as:
($125,000 ÷ $250,000) × $50,000 = $25,000 - $5,000 = $20,000 from insurer.
You pay the remaining $30,000—highlighting the need to insure at full replacement cost.

Landlord Insurance Markets in Virginia

Whether your rental is in vibrant downtown Richmond, the scenic Blue Ridge, or the fast-growing suburbs of Northern Virginia, we connect you with customized landlord insurance options for your market.

Best Landlord Insurance in Virginia

Virginia landlords have many options. We recommend a policy that includes:

• Comprehensive property insurance for Virginia-specific risks

• General liability insurance for tenant and visitor injuries

• Business interruption coverage for rental income protection

• Flood insurance if your property is in a flood-prone area

Work with an agency that specializes in landlord insurance Virginia and can compare quotes from multiple insurers to get the best price and protection. Start your Virginia landlord insurance quote with OfferMarket Insurance today!

Landlord Insurance Guidelines for Virginia DSCR Loans

These guidelines reflect best practices for landlord insurance Virginia to meet DSCR lender requirements:

Coverage Type

General Liability Insurance

Business Interruption Insurance

Flood Insurance

Additional Details for Virginia Landlord Insurance

Frequently Asked Questions About Landlord Insurance in Virginia

How does OfferMarket Insurance work for Virginia landlords?

OfferMarket Insurance is a platform designed for the needs of Virginia property owners. We compare quotes from leading insurers, ensuring your policy meets your preferences and any lender requirements. Our experts review each quote so you receive the most value for your money.

Do I need a Builders Risk Policy in Virginia?

Builders Risk insurance is not part of standard landlord insurance in Virginia. You only need it if you are building or renovating a rental. It protects your property and materials during construction.

Can I use Functional Replacement Cost instead of Replacement Cost Value for my Virginia rental?

That depends on your lender’s policies. Some Virginia lenders accept Functional Replacement Cost, while others require full Replacement Cost Value, as determined by your property’s age and appraisal.

Why does my Virginia lender require to be Additional Insured?

Certain DSCR lenders in Virginia ask for this. It extends liability coverage to the lender, while the Mortgagee Clause covers property rights. Understanding both ensures your Virginia policy meets lender needs.

Can I use my own insurance agent for landlord insurance in Virginia?

Yes, if your agent can provide competitive policies and understands Virginia’s landlord insurance requirements. Agents who specialize only in personal insurance may lack the expertise needed.

Can I pay for landlord insurance at closing in Virginia?

DSCR loans in Virginia usually require full payment of insurance premiums at settlement, either on the HUD-1/ALTA or directly through your insurance agent.

Can I escrow my landlord insurance premium in Virginia?

Most institutional lenders in Virginia require premiums to be escrowed as part of your monthly mortgage payment to ensure coverage continuity.

Can I get a refund if I cancel my Virginia landlord insurance policy?

Yes, Virginia law requires insurers to refund unearned premiums on a pro-rated basis. Always ensure replacement coverage is in place before canceling.

What is an AM Best Rating?

AM Best rates the financial stability of insurance companies. In Virginia, choose carriers rated A- VIII or higher for reliable landlord insurance.

What is Builders Risk Insurance in Virginia?

Builders Risk covers properties and materials in Virginia during construction or renovation. It protects against fire, wind, theft, and vandalism while building, and ends when construction is complete or the property is occupied.

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