The Virginia Property Insurance Association (VPIA) is the FAIR Plan, or insurer of last resort, for homeowners in Virginia unable to obtain standard coverage through the private market due to high risk. If you’ve been turned down by at least two companies for home insurance in Virginia, you may need to purchase FAIR Plan coverage through VPIA.
What is the Virginia FAIR Plan and who runs it?
The Virginia Fair Access to Insurance Requirements (FAIR) Plan is a last-resort program that provides basic home insurance coverage to high-risk residential and commercial properties in Virginia. The FAIR Plan is administered by the Virginia Property Insurance Association (VPIA).
The VPIA provides only basic property insurance policies with limited coverage compared to a full standard homeowners policy.
Who qualifies for VPIA coverage?
Homeowners who cannot obtain home insurance through the voluntary market may qualify for VPIA coverage. While no specific eligibility criteria are listed publicly, typical paths to VPIA eligibility may include:
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Documented denial or nonrenewal from two or more standard-market insurers
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Property characteristics that fall outside what standard insurers in Virginia will insure. This can include location, age, or other risk factors specific to the home.
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A claims history that has made standard-market coverage harder to obtain
To qualify for coverage, your property will still need to meet VPIA's own standards. This means demonstrating basic insurability — up-to-code electrical wiring, a sound foundation, and functional plumbing — since VPIA can decline or restrict coverage for properties in poor condition (for example, cosmetic-repair or vacant properties generally don't qualify). In other words, VPIA is a safety net for homes standard insurers won't issue policies for due to reasons like location or claims history — not a workaround for homes that don't meet baseline safety standards.
What does VPIA coverage include?
Residential policyholders may be able to choose between two types of dwelling insurance through VPIA:
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Form FP-1: Also known as Basic Form Fire with optional Extended Coverage, Form FP-1 includes basic coverage for the structure of your home and/or your personal property.
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Form FP-2: Also known as Broad Form coverage, an FP-2 policy includes loss of use coverage for additional living expenses.
|
Coverage |
Basic Form Fire (FP-1) |
Broad Form (FP-2) |
|
Dwelling (Coverage A) |
$4,000 minimum |
$12,000 minimum |
|
Other structures (Coverage B) |
10% of residence limit |
10% of residence limit |
|
Personal property (Coverage C) |
$1,000 minimum |
$4,000 minimum |
|
Fair rental value (Coverage D) |
10% of residence limit |
10% of residence limit |
|
Additional living expenses (Coverage E) |
Not covered |
10% of residence limit |
|
Personal liability (optional supplement) |
Available up to $100,000 |
Available up to $100,000 |
Unlike standard home insurance, which always includes coverage for both your dwelling and your personal property, VPIA policies can exclude either type of coverage. Both types of policy may include dwelling coverage (Coverage A) and/or personal property coverage (Coverage C).
Your VPIA form also determines which perils, or causes of loss, are covered by your insurance. The most basic FAIR Plan, or FP-1 with no extended coverage, only covers three perils: fire, lightning, and explosion. It excludes all other causes of loss.
|
Perils |
Basic Form Fire (FP-1) |
Basic Form Fire and Extended Coverage (FP-1) |
Broad Form (FP-2) |
|
Fire/lightning |
Covered |
Covered |
Covered |
|
Explosion |
Covered |
Covered |
Covered |
|
Windstorm or hail |
Not Covered |
Covered |
Covered |
|
Riot or civil commotion |
Not Covered |
Covered |
Covered |
|
Aircraft |
Not Covered |
Covered |
Covered |
|
Vehicles |
Not Covered |
Covered |
Covered |
|
Smoke |
Not Covered |
Covered |
Covered |
|
Volcanic action |
Not Covered |
Covered |
Covered |
|
Sinkhole collapse |
Not Covered |
Covered |
Covered |
|
Vandalism |
Not Covered |
Available as endorsement |
Covered |
|
Burglary |
Not Covered |
Not Covered |
Covered |
|
Falling objects |
Not Covered |
Not Covered |
Covered |
|
Weight of ice, snow, or sleet |
Not Covered |
Not Covered |
Covered |
|
Accidental tearing apart, burning, or bulging |
Not Covered |
Not Covered |
Covered |
|
Accidental discharge of liquids or steam |
Not Covered |
Not Covered |
Covered |
|
Freezing of plumbing or heating |
Not Covered |
Not Covered |
Covered |
|
Sudden and accidental electrical damage |
Not Covered |
Not Covered |
Covered |
You’ll have the option to choose both a policy deductible (for all VPIA policies) and a windstorm or hail deductible for policies which cover those perils.
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All perils deductible options: $500, $1,000, or $2,500
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Windstorm or hail deductible options: $1,000, $2,000, $2,500, or $5,000
The following endorsements may be available for some VPIA policies:
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Vandalism coverage (FP-1 only): FP-1 policies can be modified with a vandalism endorsement to include this additional peril.
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Inflation guard coverage: Increases Coverage A and B limits automatically on a quarterly basis to keep pace with inflation
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Additional coverage for private structures: You can include additional coverage for a specific private structure such as a gazebo or shed for an extra charge.
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Residential rental and incidental business endorsements: If you rent your home or private structures to others or conduct business on the premises, you may need these endorsements.
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Theft coverage: Limited coverage for on-premises theft, up to $5,000, is available for some policies.
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Replacement value for personal property: You can insure your personal property under Coverage C for its replacement value rather than its actual cash value, but your Coverage C premium will increase by 45%.
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Increase to additional living costs coverage: FP-2 policies can add additional loss of use coverage for an additional fee.
What does the FAIR Plan not cover?
The FAIR Plan in Virginia doesn’t cover theft of personal property without an endorsement. Basic Form (FP-1) policies also exclude additional living expenses and common perils such as water damage, windstorm, and hail.
Flooding is always excluded from standard and VPIA home insurance policies. Check your policy offer or documents to understand exactly what’s covered and what’s excluded from coverage in your case.
How do you apply for VPIA coverage?
To apply for VPIA coverage, you must:
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Be declined by at least one insurer from the standard market: Keep any documents connected with your rejection on hand to prove that you were turned down.
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Choose a VPIA agent: You can search for VPIA agents by ZIP code or insurer affiliation on the VPIA website, or work with any licensed Virginia insurance agent to find VPIA coverage.
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Provide information about your property: You’ll need to give your VPIA agent information about your home, including its year of construction, construction type, and occupancy details, to complete the application.
Note that while you can request a tentative dwelling quote on the VPIA website, this does not constitute an application for coverage. Instead, tentative quotes can give you an idea of what you’d likely pay for VPIA coverage.
Frequently asked questions
Is FAIR Plan insurance good?
FAIR Plan insurance is an essential safety net for homeowners unable to obtain standard home insurance coverage through the voluntary market, but these plans typically offer limited coverage that may cost more than standard home insurance relative to its benefits. FAIR Plan insurance is likely worth it if you can’t find a standard policy that will accept your property, but be aware that it typically costs more and covers less than regular home insurance.
Who has the cheapest homeowners insurance in Virginia?
The cheapest homeowners insurance in Virginia varies by home, insurer, and risk profile. Compare rates from at least three to five insurers in the standard market before turning to the VPIA FAIR Plan if you’re unable to find coverage elsewhere.
