Be it enacted by the General Assembly of Virginia:
1. That §§55-225.24 and 55-248.7:2 of the Code of Virginia are amended and reenacted as follows:
§55-225.24. Landlord may obtain certain insurance for tenant.
A. Damage Insurance.
A landlord may require as a condition of tenancy that a tenant have commercial
insurance coverage as specified in the rental agreement to secure the
performance by the tenant of the terms and conditions of the rental agreement
and pay for the cost of premiums for such insurance coverage obtained by the
landlord, generally known as "damage insurance." As provided in §
55-225.02, such payments shall not be deemed a security deposit, but shall be
rent. However, the landlord shall not require a tenant to pay both security
deposits and the cost of damage insurance premiums, if the total amount of any
security deposits and damage insurance premiums exceeds the amount of two
months' periodic rent. The landlord shall notify a tenant in writing that the
tenant has the right to 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 to the landlord written proof of such coverage and shall maintain
such coverage at all times during the term of the rental agreement. Where a landlord
obtains damage insurance coverage on behalf of a tenant, the insurance policy
shall provide coverage for the tenant as an insured. The landlord shall recover
from the tenant the actual costs of such insurance coverage and may recover
administrative or other fees associated with administration of a damage
insurance policy, including a tenant opting out of the insurance coverage
provided by the landlord pursuant to this subsection. If a landlord obtains
damage insurance for his tenants, the landlord shall provide to each tenant,
prior to execution of the rental agreement, a summary of the insurance policy
or certificate evidencing the coverage being provided and upon request of the
tenant make available a copy of the insurance policy.
B. Renter's Insurance. Where a landlord
obtains damage insurance coverage on behalf of a tenant, the insurance policy
shall provide coverage for the tenant as an insured. The landlord shall recover
from the tenant the actual costs of such insurance coverage and may recover
administrative or other fees associated with administration of a damage
insurance policy, including a tenant opting out of the insurance coverage
provided by the landlord pursuant to this subsection. If a landlord obtains
damage insurance for his tenants, the landlord shall provide to each tenant,
prior to execution of the rental agreement, a summary of the insurance policy
or certificate evidencing the coverage being provided and upon request of the
tenant make available a copy of the insurance policy. The landlord shall also
provide a notice to the tenant that, in
case of damage to the property, (i) the
landlord is not responsible for the tenant's personal
property, (ii) the damage insurance purchased by the
landlord covers only the structure and not the tenant's personal
property, and (iii) if the tenant wishes to protect his
personal property, he
should obtain renter's insurance. If
the lessee requests translation of
the notice from the English language to another language, the landlord shall
assist the lessee in obtaining a translator or
refer the lessee to an electronic translation service.
The landlord shall not charge a fee for such assistance or referral. In doing
so, the landlord shall not be deemed to have breached any of his obligations
under this chapter or otherwise become liable for any inaccuracies in the
translation.
C. A landlord may require as a condition of tenancy that a tenant have renter's insurance as specified in the rental agreement that is a combination multi-peril policy containing fire, miscellaneous property, and personal liability coverage insuring personal property located in residential units not occupied by the owner. A landlord may require a tenant to pay for the cost of premiums for such insurance obtained by the landlord, to provide such coverage for the tenant as part of rent or as otherwise provided herein. As provided in §55-225.02, such payments shall not be deemed a security deposit, but shall be rent. If the landlord requires that such premiums be paid prior to the commencement of the tenancy, the total amount of all security deposits and insurance premiums for damage insurance and renter's insurance shall not exceed the amount of two months' periodic rent. Otherwise, the landlord may add a monthly amount as additional rent to recover the costs of such insurance coverage. The landlord shall notify a tenant in writing that the tenant has the right to obtain a separate policy from the landlord's policy for renter's insurance. If a tenant elects to obtain a separate policy, the tenant shall submit to the landlord written proof of such coverage and shall maintain such coverage at all times during the term of the rental agreement. If a tenant allows his renter's insurance policy required by the rental agreement to lapse for any reason, the landlord may provide any landlord's renter's insurance coverage to such tenant. The tenant shall be obligated to pay for the cost of premiums for such insurance as rent or as otherwise provided herein until the tenant has provided written documentation to the landlord showing that the tenant has reinstated his own renter's insurance coverage.
C. D. Where a landlord obtains
renter's insurance coverage on behalf of a tenant, the insurance policy shall provide
coverage for the tenant as an insured. The landlord shall recover from the
tenant the actual costs of such insurance coverage and may recover
administrative or other fees associated with the administration of a renter's
insurance program, including a tenant opting out of the insurance coverage
provided to the tenant pursuant to this subsection. If a landlord obtains
renter's insurance for his tenants, the landlord shall provide to each tenant,
prior to execution of the rental agreement, a summary of the insurance policy
prepared by the insurer or certificate evidencing the coverage being provided
and upon request of the tenant make available a copy of the insurance policy.
D. E. Nothing in this section
shall be construed to prohibit the landlord from recovering from the tenant as
part of the rent, the tenant's prorated share of the actual costs of other
insurance coverages provided by the landlord relative to the premises, or the
tenant's prorated share of a self-insurance program held in an escrow account
by the landlord, including the landlord's administrative or other fees
associated with the administration of such coverages. The landlord may apply
such funds held in escrow to pay claims pursuant to the landlord's
self-insurance plan.
§55-248.7:2. Landlord may obtain certain insurance for tenant.
A. Damage Insurance.
A landlord may require as a condition of tenancy that a tenant have commercial
insurance coverage as specified in the rental agreement to secure the
performance by the tenant of the terms and conditions of the rental agreement
and pay for the cost of premiums for such insurance coverage obtained by the
landlord, generally known as "damage insurance." As provided in §
55-248.4, such payments shall not be deemed a security deposit, but shall be
rent. However, as provided in §55-248.9, the landlord cannot require a tenant
to pay both security deposits and the cost of damage insurance premiums, if the
total amount of any security deposits and damage insurance premiums exceeds the
amount of two months' periodic rent. The landlord shall notify a tenant in
writing that the tenant has the right to 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 to the landlord written proof of such coverage
and shall maintain such coverage at all times during the term of the rental
agreement. Where a landlord
obtains damage insurance coverage on behalf of a tenant, the insurance policy
shall provide coverage for the tenant as an insured. The landlord shall recover
from the tenant the actual costs of such insurance coverage and may recover
administrative or other fees associated with administration of a damage
insurance policy, including a tenant opting out of the insurance coverage
provided by the landlord pursuant to this subsection. If a landlord obtains
damage insurance for his tenants, the landlord shall provide to each tenant,
prior to execution of the rental agreement, a summary of the insurance policy
or certificate evidencing the coverage being provided and upon request of the
tenant make available a copy of the insurance policy.
B. Renter's Insurance. Where a landlord obtains damage insurance coverage
on behalf of a tenant, the insurance policy shall provide coverage for the
tenant as an insured. The landlord shall recover from the tenant the actual
costs of such insurance coverage and may recover administrative or other fees
associated with administration of a damage insurance policy, including a tenant
opting out of the insurance coverage provided by the landlord pursuant to this
subsection. If a landlord obtains damage insurance for his tenants, the
landlord shall provide to each tenant, prior to execution of the rental
agreement, a summary of the insurance policy or certificate evidencing the
coverage being provided and upon request of the tenant make available a copy of
the insurance policy. The landlord shall also provide a notice to the tenant
that, in case of damage to the property, (i) the landlord is not responsible
for the tenant's personal property, (ii) the damage insurance purchased by the
landlord covers only the structure and not the tenant's personal property, and
(iii) if the tenant wishes to protect his
personal property, he
should obtain renter's insurance. If the lessee
requests translation of the notice from the
English language to another language, the landlord shall assist the lessee in
obtaining a translator or refer the lessee to
an electronic translation service.
The landlord shall not charge a fee for such assistance or referral. In doing
so, the landlord shall not be deemed to have breached any of his obligations
under this chapter or otherwise become liable for any inaccuracies in the
translation.
C. A landlord may require as a condition of tenancy that a tenant have renter's insurance as specified in the rental agreement that is a combination multi-peril policy containing fire, miscellaneous property, and personal liability coverage insuring personal property located in residential units not occupied by the owner. A landlord may require a tenant to pay for the cost of premiums for such insurance obtained by the landlord, to provide such coverage for the tenant as part of rent or as otherwise provided herein. As provided in §55-248.4, such payments shall not be deemed a security deposit, but shall be rent. If the landlord requires that such premiums be paid prior to the commencement of the tenancy, the total amount of all security deposits and insurance premiums for damage insurance and renter's insurance shall not exceed the amount of two months' periodic rent. Otherwise, the landlord may add a monthly amount as additional rent to recover the costs of such insurance coverage. The landlord shall notify a tenant in writing that the tenant has the right to obtain a separate policy from the landlord's policy for renter's insurance. If a tenant elects to obtain a separate policy, the tenant shall submit to the landlord written proof of such coverage and shall maintain such coverage at all times during the term of the rental agreement. If a tenant allows his renter's insurance policy required by the rental agreement to lapse for any reason, the landlord may provide any landlord's renter's insurance coverage to such tenant. The tenant shall be obligated to pay for the cost of premiums for such insurance as rent or as otherwise provided herein until the tenant has provided written documentation to the landlord showing that the tenant has reinstated his own renter's insurance coverage.
C. D. Where a landlord obtains
renter's insurance coverage on behalf of a tenant, the insurance policy shall
provide coverage for the tenant as an insured. The landlord shall recover from
the tenant the actual costs of such insurance coverage and may recover
administrative or other fees associated with the administration of a renter's
insurance program, including a tenant opting out of the insurance coverage
provided to the tenant pursuant to this subsection. If a landlord obtains
renter's insurance for his tenants, the landlord shall provide to each tenant,
prior to execution of the rental agreement, a summary of the insurance policy
prepared by the insurer or certificate evidencing the coverage being provided
and upon request of the tenant make available a copy of the insurance policy.
D. E. Nothing in this section
shall be construed to prohibit the landlord from recovering from the tenant as
part of the rent, the tenant's prorated share of the actual costs of other
insurance coverages provided by the landlord relative to the premises, or the
tenant's prorated share of a self-insurance program held in an escrow account
by the landlord, including the landlord's administrative or other fees
associated with the administration of such coverages. The landlord may apply
such funds held in escrow to pay claims pursuant to the landlord's
self-insurance plan.