Virginia FAIR Plan: what it covers, what it costs, who qualifies

Does Virginia have a FAIR Plan?

Yes. Virginia's FAIR Plan is the Virginia Property Insurance Association (VPIA), official site www.vpia.com ↗. It exists as the insurer of last resort for property owners who can't get coverage in the standard ("admitted") market.

What does it cover?

VPIA offers coverage under two main dwelling forms. FP-1 (basic form): fire, lightning, and extended coverage on an actual cash value (ACV) basis; no additional living expenses; no theft unless added by endorsement. FP-2 (broad form): broader named perils, includes additional living expenses; liability and theft coverages available by endorsement. Commercial policies also available (basic and broad perils options, AAIS forms). Optional endorsements: theft, replacement cost, liability, ordinance and law. Excludes: water damage/accidental discharge (not named perils under FP-1), flood (not covered under any VPIA policy), and personal liability on tenant-occupied dwellings (not offered). Does not cover vacant properties (with limited exceptions for builder's risk/major renovation).

How much will it cover?

The current cap on a single dwelling policy is Habitational properties (1–4 family dwellings and mobile homes): up to $500,000. Commercial buildings: up to $1,000,000 per location. FP-2 broad form requires at least 80% of calculated replacement cost at time of loss; an inflation guard endorsement (0.5% quarterly / 2% annually) applies to all FP-2 policies. (PropertyCasualty360 / Virginia Property Insurance Association, verified 2026-05-11).

Who is eligible?

Available to individuals and businesses throughout Virginia with an insurable interest who are unable to obtain coverage through the voluntary/standard insurance market. Properties must meet VPIA underwriting/condition standards. Vacant properties are generally not covered (exceptions for builder's risk and major renovations). Prohibited animals on premises (chickens, rabbits, horses, goats, pigs, snakes, certain dog breeds) can disqualify liability coverage or lead to policy cancellation. VPIA does not impose a fixed numeric declination count. Policies are NOT automatically renewed — a completed continuation application and payment are required each year (renewal packet sent 45–55 days before expiration; payment due 15 days before effective date).

How do you apply?

Through a licensed Virginia insurance producer/agent, via the VPIA online application portal (policyholder.vpia.com/underwriting/login for dwelling; main VPI portal for commercial). Dwelling applications are reviewed within two hours with automated underwriting providing immediate results (issued, declined, or referred to manual underwriting). Commercial applications require manual underwriting. Applications can also be submitted by fax to (804) 591-3735. VPIA does not sell directly to consumers.

Need a broker who writes the VA FAIR Plan? →

How much does it cost?

Generally more expensive than the standard market for narrower coverage. FP-1 policies (ACV, limited perils) are significantly more limited than a standard HO-3. Even FP-2 broad-form policies with endorsements (liability, theft, replacement cost) tend to be more expensive than comparable voluntary-market policies. A last resort, not a price-competition fallback. VPIA's 2024 revenue was approximately $18.1 million — relatively small for a state of Virginia's size, suggesting the FAIR Plan serves a narrow slice of the market.

What is changing right now?

FAIR Plan habitational policies approximately 22,622 / total exposure approximately $4.29 billion per Insurance Information Institute FY2024 reporting (may reflect a slightly earlier fiscal year). VPIA was founded as the Virginia Insurance Placement Facility in 1968 — Virginia was an early FAIR Plan adopter. Its automated underwriting system (2-hour turnaround for dwelling applications) is a relatively modern operational feature. An online chat function was added recently. No major structural changes or legislative reforms to the VPIA framework were identified at compile time — the program remains a steady, small residual market. Confirm current policy count and any rate changes from VPIA annual reports (vpia.com/member-companies/financial-statements/) and SCC Bureau of Insurance.

Do you also need a wrap (DIC) policy?

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What to do this week if you just got a non-renewal notice

1. Read the notice fully. Note the cancellation date — that's your runway.
2. Call your current agent and ask why. Some non-renewals are reversible (a minor issue, a missed inspection); most aren't.
3. Get quotes from at least three other admitted carriers before going to the FAIR Plan. If you're rural / WUI / coastal you may strike out; that's normal.
4. If admitted carriers decline, contact a broker who writes the Virginia Property Insurance Association (VPIA). They can submit on your behalf the same week.
5. Don't let coverage lapse. A lapse triggers force-placed insurance from your lender — much more expensive and worse coverage.

For the full playbook see I just got a non-renewal notice →