Landlord Insurance in Virginia: Key Considerations

In Virginia, the location of your rental property can influence the risks you face, such as damage from hurricanes, sinkholes, tornadoes, and harsh winter weather. Factor in potential crime, vacancies, and tenants, and it's easy to see how a landlord can lose sleep some nights.

Believe it or not, your homeowners insurance in Virginia won’t cover the specific risks associated with renting out your property. This is where landlord insurance comes in.

Landlord insurance in Virginia could provide financial protection if your rental property is damaged, becomes uninhabitable after a disaster such as a fire or a storm, or if someone gets injured on the property.

This article will help you explore everything about landlord insurance in Virginia, from how much it costs to what it covers and more.

Key takeaways

• Landlord insurance is a policy designed specifically for rental properties.
• This insurance could help cover property damage, liability claims, and lost rental income.
• Some optional add-ons may include burglary, vandalism, and vacant property. 
• The cost of landlord insurance in Virginia depends on the property's location, size, and risk factors.
• You could lower your premiums by increasing your deductible or adding safety features such as security systems.

Is landlord insurance required in Virginia?

Landlord insurance is not legally required in Virginia. However, it’s a major safeguard for property owners. 

Many landlords often wonder, “Do I need landlord insurance?” While you’re not mandated by law to have it, most mortgage lenders require landlord insurance as a condition for financing a rental property. 

Even if you own the property outright, landlord insurance is an effective way to mitigate risks such as property damage, liability claims, and loss of rental income.

You should also note that homeowners insurance in Virginia isn’t a substitute for landlord insurance.

This is because home insurance policies typically exclude coverage for rental activities, leaving you vulnerable if something goes wrong with your rental property. 

Invest in landlord insurance to ensure your house is adequately protected against the unique risks of being a Virginia property owner.

How much is landlord insurance in Virginia?

The landlord insurance cost in Virginia can vary widely depending on factors such as:

• Property location: If your property is in an area prone to natural disasters, crime, or frequent tenant turnover, your insurance may cost more because of the higher risk.
• Property type: The kind of property you own – whether a single-family home, a multi-family unit, or a commercial property – could affect your coverage needs and the price.
• Coverage limits: Higher coverage limits for liability and property damage often lead to higher premiums.
• Deductibles: Selecting a higher deductible could lower your insurance premium. However, a lower deductible usually means paying more for insurance.
• Claims history: If there’s a history of claims on the property, insurers may see it as riskier and charge more.
• Rental income: Properties that bring in more rental income may cost more to insure because they’re seen as more valuable and riskier.

Nevertheless, property owners in Virginia can expect to pay, on average, $958 per year for a standard landlord insurance policy.

The cost of rental property insurance is about 25% higher than home insurance premiums due to the additional risks of renting out a property.

That being said, here’s the cost of landlord insurance by location:

Northern Virginia

In areas such as Arlington or Alexandria, where property values and risks are higher, annual premiums tend to be on the upper end of the spectrum. Landlord insurance remains typically high as well.

Virginia Beach

Homes near the water may have a higher risk of storm surges, hurricanes, and flooding. Due to this, insurance premiums are more expensive since insurance companies consider the increased likelihood of claims.

Roanoke

Landlords in smaller cities such as Roanoke may pay slightly lower than the average rental insurance cost in the state, i.e. $958. This often reflects lower property values and risks.

Types of Virginia landlord insurance coverage

Also called rental property insurance or rental dwelling insurance, landlord insurance in Virginia could help protect different types of rental properties, such as:

• Single-family homes.
• Multi-family homes (like duplexes or quadplexes).
• Apartments.
• Condos.

Here’s what a typical Virginia property insurance policy may cover:

• Dwelling coverage - This coverage could help protect the structure of your house and anything permanently attached to it, including the roof, walls, floors, patios, countertops, wiring, and pipes.
• Other structures coverage - This may help cover structures on your property that aren’t attached to the main building, such as fences, sheds, carports, pools, and detached garages.
• Personal belongings coverage - If you store items at the rental property, such as tools or lawn equipment for maintenance, this coverage could help protect them. However, it may not cover your renter’s belongings.
• Landlord liability coverage - Liability coverage could help if someone gets injured on your property and you’re found responsible. For example, if a renter falls on a broken stair that wasn’t repaired, this coverage could help pay for their medical bills, legal fees, and other costs, up to your policy’s limits. The good news is that liability claims usually don’t require a deductible.
• Loss of income coverage - If a covered loss makes your property unlivable and tenants have to move out, this coverage could help replace lost rental income while repairs are being made.

These landlord insurance coverage options may help protect your rental property and finances.

Extra landlord insurance coverage options in Virginia 

Now that you know what landlord insurance in Virginia typically covers, you may wonder if you can add more protection. 

Luckily, property owners in Virginia may have the option to include additional coverage in their rental property insurance policy by choosing endorsements or insurance riders. 

For example, some insurance providers may cover tenant moving costs if repairs require them to leave the property. Also, vandalism isn’t typically covered unless you add a vandalism rider. 

This coverage could be helpful for properties in high-crime areas or ones that have been empty for an extended period due to renovations.

Without further ado, here are some additional coverage options Virginia landlords may consider:

• Burglary coverage: Most landlord insurance policies in Virginia don’t cover items such as appliances or tools used in the rental. A burglary rider could help replace things like refrigerators, ovens, washers, dryers, lawnmowers, or snow blowers if they’re stolen.
• Vandalism coverage: This rider could help protect against damage caused by vandalism, such as smashed walls or graffiti. 
• Building code coverage: If your rental property is damaged and needs repairs, you may need to upgrade it to comply with current building codes. For example, older homes may require updated electrical or plumbing systems. This coverage could help with those additional costs.
• Vacant property coverage: If your rental house remains unoccupied for more than 30 days, this rider could help protect it. It may be particularly useful during renovations or before a tenant moves in.
• HVAC reimbursement: If the heating or air conditioning system breaks down, this coverage could help compensate tenants while waiting for repairs, especially in extreme weather.
• Personal umbrella policy: If you own multiple properties or face repair costs that go beyond your regular policy limits, an umbrella policy may offer additional financial protection.

These additional options could provide peace of mind and could help protect you from unexpected expenses.

Virginia landlord insurance coverage exclusions

Virginia is generally considered a landlord-friendly state. However, standard rental insurance policies may not cover certain risks. Here are some common exclusions: 

• Tenant’s belongings - Landlord insurance doesn’t cover a tenant’s personal items. For example, if a fire destroys a tenant’s car, furniture, or antique collection, rental dwelling insurance won’t pay for those losses. Tenants should obtain their own renter’s insurance to protect their belongings from damage, theft, or loss.
• Appliance repairs or replacements - If an appliance in your rental property breaks down, it’s your responsibility as the landlord to fix or replace it. Unless an insured peril, such as a fire or flood, damages the appliance, standard landlord insurance may not cover these costs. 
• Shared property - If you live in the property and rent out a room (or even a separate floor), you may not qualify for a landlord insurance policy. These policies are designed for properties you don’t live in, also called “non-owner-occupied” properties. Contact your insurance company or agent and ask if you can add coverage to your home insurance for the rented portion of your property.
• Earthquake damage - Since 1977, over 195 earthquakes have been recorded in the state of Virginia – and at least 29 of them were strong enough to be felt on the surface.If your rental is located in earthquake-prone areas, make sure to consider adding earthquake insurance to protect your investment. That’s because standard landlord insurance may not cover damage caused by earthquakes.
• Flood damage - Flooding caused by heavy rain, snowmelt, or other factors typically isn’t covered under standard landlord insurance. Even if your property isn’t in a flood zone, you may want to consider adding flood insurance. To reduce flood risks, it is recommended to install a sump pump, grade the yard away from the house, and ensure the gutters direct water away from the foundation.
• Fire damage - Landlord insurance doesn’t always include coverage for fire damage. To protect rental properties from fire-related losses, landlords and tenants may want to add fire insurance to their policies. 

How to lower your Virginia landlord insurance premium

If you’re a property owner in Virginia, it’s important to have solid insurance coverage. However, this doesn’t mean you have to overpay. 

There are effective ways to reduce your Virginia property insurance premiums without cutting corners or sacrificing the protection you need. 

Here are some simple, actionable tips to which could help you save money:

Keep your property well-maintained

When you take care of your rental property, it not only attracts better tenants but also reduces the risk of expensive repairs and insurance claims. Regular maintenance could help lower your insurance costs. 

Experts recommend doing things such as:

• Replacing air filters regularly.
• Scheduling regular pest control.
• Testing smoke and carbon monoxide detectors.
• Draining the water heater.
• Re-caulking bathrooms.
• Cleaning gutters.
• Performing regular inspections.

By staying on top of maintenance, you may demonstrate to your insurance provider that your property is a lower risk. 

Shop around for the best deal

Insurance rates and coverage options vary between companies, so it’s worth your time to compare multiple quotes. 

An independent insurance agent could be especially helpful in finding the best coverage at the most competitive price. They’ll navigate your options and may assist in tailoring a plan to fit your needs and budget.

Bundle your policies

If you have other insurance policies, such as auto or homeowners insurance, consider bundling them with your landlord insurance. 

Many insurance providers offer discounts when you combine policies. This approach could not only save you money but it could also help simplify managing your insurance needs.

Raise your deductible

A higher deductible could significantly lower your monthly premium. While this means you would pay more out of pocket in the event of a claim, it could reduce your overall insurance costs. 

Choose a deductible that you can afford if something happens but one that also helps you save money in the long run.

Focus on safety features

Adding safety features to your rental property may help you qualify for discounts. Consider installing:

• Security cameras.
• Motion-detecting lights.
• Alarm systems.
• Smoke and carbon monoxide detectors.

Insurance companies often view properties with strong safety measures as lower risk, which could help lower your premium.

Still have questions?

Want to learn more about landlord insurance in Virginia? Here are some frequently asked questions to help you navigate the topic.

How much renters insurance should a landlord require in Virginia?

As a landlord, you may require tenants to carry renters insurance, which could help cover damage to your property caused by their negligence. 

How much is rental insurance in VA?

Renters insurance in Virginia typically costs around $20 per month (or $240 per year), depending on the coverage limits.

What will you most likely need to insure as a landlord in Virginia?

As a landlord, it’s important to consider insuring the property’s structure, personal property, and any potential liability risks. For extra peace of mind, property owners might also want to include coverage for loss of rental income. 

Who has the cheapest landlord insurance in Virginia?

Insurance providers such as State Farm, Allstate, and Liberty Mutual often provide competitive rates for landlord insurance in Virginia. However, it’s best to compare quotes tailored to your property.

What factors influence the price of landlord insurance in Virginia?

Several factors may impact the cost of landlord insurance, including the property’s location, age, and condition, as well as your chosen coverage limits, deductible, and the presence of safety features such as alarms or sprinklers.