Virginia FAIR Plan (VPIA) for Richmond Home Buyers: What to Do When an Insurer Will Not Write Your Policy or Renews With a Big Increase

Published October 30, 2026 | Written by the Mission Realty Team.

If an insurer will not write a policy on the house you are buying, or your renewal comes back far higher, the Virginia FAIR Plan is a last-resort option, and you should know its limits before you rely on it. In Virginia, that plan is the Virginia Property Insurance Association (VPIA). The State Corporation Commission’s Bureau of Insurance calls it a last resort because the premium is generally higher and the coverage is frequently more limited than a policy from a private company. This guide uses only the Code of Virginia, the Bureau of Insurance and VPIA’s own site. We are real estate agents, not insurance agents, so treat it as a map and then call a licensed insurance agent.

What the Virginia FAIR Plan actually is

Chapter 27 of Title 38.2 of the Code of Virginia sets up a residual market facility so that basic property insurance stays available for qualified property. The Code’s stated purposes include making basic property insurance available for qualified property and encouraging use of the voluntary market first. Under section 38.2-2701, “basic property insurance” means coverage against the perils in the standard fire policy and its extended coverage endorsement, plus any other forms the governing body recommends and the Commission approves.

That is narrower than a typical homeowners package. The Bureau of Insurance homeowners guide says VPIA coverage includes fire, lightning, removal, hail, explosion, riots, smoke, vandalism and malicious mischief, and does not include glass breakage. A broader form exists for eligible properties, and liability and theft coverage can be bought only if the property is eligible. The VPIA FAQ adds that liability is not offered on tenant-occupied dwellings. Our post on reading a homeowners insurance quote before closing explains the pieces of a standard quote, so you can see what you would be giving up.

When an insurer says no or nonrenews

Start with what Virginia law says an insurer must do. Under section 38.2-2114, for an owner-occupied dwelling, a notice of refusal to renew must state the date the policy ends, which must be at least 30 days after the notice is mailed or delivered. It must give the specific reason, tell you that within 10 days of receipt you may ask the Commissioner in writing to review the action, and tell you that you may be eligible for fire coverage through VPIA. The policy stays in force while the Commissioner’s review is pending, except for nonpayment.

The Code and the Bureau’s guide also list reasons an insurer may not use as the sole basis. These include any claim resulting primarily from natural causes, claims incurred more than 60 months before the policy period ends, and an inquiry about your coverage. Credit information cannot be the sole basis either, and the Bureau says an insurer cannot refuse you solely because of the age of your home or because you bought through VPIA. The Commissioner cannot substitute his judgment on underwriting for the insurer’s, so a review checks whether the rules were followed. It does not decide whether the insurer should have kept you.

A big renewal increase is a different problem. The Code says nothing in the section prohibits an insurer from setting rates in line with actuarial data, and the Bureau describes Virginia as a competitive rating state, so prices vary by company. The Bureau’s guide also says an insurer that raises your deductible at renewal must tell you and explain how the new deductible works. Our post on how homeowners insurance is priced shows what usually drives the number.

Steps to take before closing

1. Ask for quotes early. The Bureau advises asking several companies or agents for quotes on the same coverage and tracking them on its shopper’s worksheet. If one company declines, ask others, since each has its own underwriting rules.
2. Ask why. The Bureau says Virginia law requires a company to give the reason when it refuses, cancels or nonrenews. If the reason is wrong, the Bureau says you may copy the company’s file and correct the information.
3. Fix what can be fixed. The Bureau notes you may not be able to buy a package policy if the home needs repairs, and that two separate policies, one for the home and contents and one for liability, may be possible. Our post on roof age and insurance in a Richmond sale covers one common issue, and the CLUE report covers a seller’s claims history.
4. Check the lender’s rules. Your lender will require coverage. We did not verify whether any particular lender accepts a VPIA policy, so ask yours in writing. Start with our featured lenders page if you need a lender to ask.
5. Then consider VPIA. The Bureau tells buyers who cannot get coverage from a private company to contact any insurance agent about VPIA.

How VPIA works day to day

You apply through an agent. VPIA’s FAQ says agents cannot bind coverage and that a new dwelling application is typically reviewed within two hours of submission. Quotes and applications are separate, so the issued premium can differ from a quote. VPIA says it does not offer payment plans and requires payment in full, though you can use a premium finance company. It also says it does not renew automatically: you reapply each year with a continuation application, the renewal packet is mailed 45 to 55 days before the renewal date, and payment is due 15 days before the new term.

VPIA says it typically orders a new dwelling inspection every 3 to 5 years, and that an inspection can lead to condition surcharges or canceled coverages. Its examples include missing handrails on porches or steps with three or more risers, which can lead to liability being canceled. For a vacant house, VPIA says it covers only a property under active major renovation or being built, and that a home pending cleanout or sale does not qualify. If you are buying an older house in a neighborhood such as Church Hill or the Fan, plan for an inspection and keep the repair records. For the Richmond suburbs, see our Henrico and Chesterfield community hubs.

Disputes and what is changing

Under section 38.2-2712, anyone aggrieved by a decision of VPIA’s inspection service or the facility itself may appeal to the State Corporation Commission within 30 days. Separately, the Code’s nonrenewal section changes on January 1, 2027. The later version adds limits on refusing coverage, canceling or not renewing an owner-occupied policy solely because of an asphalt shingle roof’s age, including a right to prove the roof’s age with receipts, permits or an inspection. It does not require an insurer to cover a roof with documented damage or defects. That version is not in effect yet, so do not assume it applies to a renewal you receive today.

Two companion posts this weekend look at related buyer questions, including what a carrier may offer when it declines a standard homeowners form, and how to insure a house while repairs are under way.

This post is general information, not insurance or legal advice. A licensed insurance agent can tell you what is available for a specific address.

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