2006 Code of Virginia § 55-248.7:2 - Landlord may obtain certain insurance for tenant

55-248.7:2. Landlord may obtain certain insurance for tenant.

A. Damage Insurance. A landlord may require as a condition of tenancy that atenant pay for the cost of premiums for commercial insurance coverage,obtained by the landlord, to secure the performance by the tenant of theterms and conditions of the rental agreement, generally known as "damageinsurance." As provided in 55-248.4, such payments shall not be deemed asecurity deposit, but shall be rent. However, as provided in 55-248.9, thelandlord cannot require a tenant to pay both security deposits and the costof damage insurance premiums, if the amount of any security deposits anddamage insurance premiums exceeds the amount of two months' periodic rent.The landlord shall notify a tenant in writing that the tenant has the rightto obtain a separate policy from the landlord's policy for damage insurance.If a tenant elects to obtain a separate policy, the tenant shall submit tothe landlord written proof of such coverage and shall maintain such coverageat all times during the term of the rental agreement.

B. Renter's Insurance. A landlord may require as a condition of tenancy thata tenant pay for the cost of premiums for property and casualty insurance,obtained by the landlord, to provide liability coverage for the tenant andproperty coverage for the tenant's personal property in the dwelling unit,which is generally known as "renter's insurance." As provided in 55-248.4, such payments shall not be deemed a security deposit, but shall berent. If the landlord requires that such premiums be paid prior to thecommencement of the tenancy, the total amount of all security deposits andinsurance premiums for damage insurance and renter's insurance shall notexceed the amount of two months' periodic rent. Otherwise, the landlord mayadd a monthly amount as additional rent to recover the costs of suchinsurance coverage. The landlord shall notify a tenant in writing that thetenant has the right to obtain a separate policy from the landlord's policyfor renter's insurance. If a tenant elects to obtain a separate policy, thetenant shall submit to the landlord written proof of such coverage and shallmaintain such coverage at all times during the term of the rental agreement.

C. Where a landlord obtains for a tenant either damage insurance or renter'sinsurance pursuant to subsection A or B, the landlord shall name the tenantas a "co-insured," so that the tenant will have privity of contract withthe insurance company. Further, the landlord shall only be reimbursed for theactual costs of such insurance coverage and shall not be entitled to recoveradministrative or other fees associated with the insurance coverage providedto the tenant pursuant to this section. If a landlord obtains either damageinsurance or renter's insurance for his tenants, the landlord shall provideto each tenant, prior to execution of the rental agreement, a copy of theinsurance policies, and a summary prepared by the insurer explaining thecoverage being provided.

(2004, c. 123; 2005, c. 285.)