{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2026\/code-json\/6.2-412.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2026\/code-text\/6.2-412.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2026\/code-xml\/6.2-412.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2026\/code-html\/6.2-412.html"}],"law_id":374241,"edition_id":2,"section_id":374241,"structure_id":53215,"section_number":"6.2-412","catch_line":"Insurance coverage under certain loans not to exceed replacement value of improvements","history":"1989, c. 230, \u00a7 6.1-2.6:1; 2010, c. 794; 2014, c. 247.","full_text":"A\n\nAs used in this section:\n\t\t\t“Flood insurance coverage” means insurance against loss or damage to any property caused by flooding or the rising of the waters of the ocean or its tributaries.\n\n\t\t\t“Property insurance coverage” means insurance against losses or damages caused by perils that commonly are covered in insurance policies described with terms similar to “standard fire” or “standard fire with extended coverage.”\n\nB\n\nNo lender shall require a borrower, as a condition to receiving or maintaining a loan secured by any mortgage or deed of trust, to provide or purchase property insurance coverage or flood insurance coverage against risks to any improvements on any real property in an amount exceeding the replacement value of the improvements on the real property.\n\nC\n\nIn determining the replacement value of the improvements on any real property, the lender may:\n\n1\n\nAccept the value placed on the improvements by the insurer; or\n\n2\n\nUse the value placed on the improvements that is determined by the lender’s appraisal of the real property.\n\nD\n\nA violation of this section shall not affect the validity of the mortgage or deed of trust securing the loan.\n\n","order_by":null,"text":{"0":{"id":1397110,"text":"As used in this section:\n\t\t\t“Flood insurance coverage” means insurance against loss or damage to any property caused by flooding or the rising of the waters of the ocean or its tributaries.\t\t\t“Property insurance coverage” means insurance against losses or damages caused by perils that commonly are covered in insurance policies described with terms similar to “standard fire” or “standard fire with extended coverage.”","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":1397111,"text":"No lender shall require a borrower, as a condition to receiving or maintaining a loan secured by any mortgage or deed of trust, to provide or purchase property insurance coverage or flood insurance coverage against risks to any improvements on any real property in an amount exceeding the replacement value of the improvements on the real property.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":1397112,"text":"In determining the replacement value of the improvements on any real property, the lender may:","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"C1"},"3":{"id":1397113,"text":"Accept the value placed on the improvements by the insurer; or","type":"section","prefixes":["C","1"],"prefix":"1","entire_prefix":"C1","prefix_anchor":"C1","level":2,"prior_prefix":"C","next_prefix":"C2"},"4":{"id":1397114,"text":"Use the value placed on the improvements that is determined by the lender’s appraisal of the real property.","type":"section","prefixes":["C","2"],"prefix":"2","entire_prefix":"C2","prefix_anchor":"C2","level":2,"prior_prefix":"C1","next_prefix":"D"},"5":{"id":1397115,"text":"A violation of this section shall not affect the validity of the mortgage or deed of trust securing the loan.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C2"}},"ancestry":[{"id":53215,"edition_id":2,"name":"Loans Secured by Lien on Real Estate","identifier":"2","label":"article","depth":4,"order_by":2,"parent_id":53213,"metadata":{"child_laws":18,"child_structures":0},"date_created":"2026-08-02 03:13:12","date_modified":"2026-08-02 12:27:55","permalink":{"id":1490493,"object_type":"structure","relational_id":53215,"identifier":"2","token":"6.2\/I\/4\/2","url":"\/6.2\/I\/4\/2\/","edition_id":2,"permalink":0,"preferred":1}},{"id":53213,"edition_id":2,"name":"Certain Lending Practices","identifier":"4","label":"chapter","depth":3,"order_by":4,"parent_id":53153,"metadata":{"child_laws":38,"child_structures":5},"date_created":"2026-08-02 03:13:11","date_modified":"2026-08-02 12:27:55","permalink":{"id":1490465,"object_type":"structure","relational_id":53213,"identifier":"4","token":"6.2\/I\/4","url":"\/6.2\/I\/4\/","edition_id":2,"permalink":0,"preferred":1}},{"id":53153,"edition_id":2,"name":"General Provisions","identifier":"I","label":"subtitle","depth":2,"order_by":1,"parent_id":53152,"metadata":{"child_laws":99,"child_structures":18},"date_created":"2026-08-02 03:11:41","date_modified":"2026-08-02 12:27:54","permalink":{"id":1490253,"object_type":"structure","relational_id":53153,"identifier":"I","token":"6.2\/I","url":"\/6.2\/I\/","edition_id":2,"permalink":0,"preferred":1}},{"id":53152,"edition_id":2,"name":"Financial Institutions and Services","identifier":"6.2","label":"title","depth":1,"order_by":10,"parent_id":null,"metadata":{"child_laws":961,"child_structures":89},"date_created":"2026-08-02 03:11:41","date_modified":"2026-08-02 12:27:53","permalink":{"id":1490251,"object_type":"structure","relational_id":53152,"identifier":"6.2","token":"6.2","url":"\/6.2\/","edition_id":2,"permalink":0,"preferred":1}}],"structure_contents":[{"id":374235,"structure_id":53215,"section_number":"6.2-406","catch_line":"Disclosure of terms of mortgage application","url":"\/6.2-406\/","token":"6.2\/I\/4\/2\/6.2-406","metadata":{"court_decisions":""}},{"id":374236,"structure_id":53215,"section_number":"6.2-407","catch_line":"Lenders to furnish borrower with copy of appraisal","url":"\/6.2-407\/","token":"6.2\/I\/4\/2\/6.2-407","metadata":false},{"id":374237,"structure_id":53215,"section_number":"6.2-408","catch_line":"Priority of interest on debts secured by mortgage or deed of trust","url":"\/6.2-408\/","token":"6.2\/I\/4\/2\/6.2-408","metadata":false},{"id":374238,"structure_id":53215,"section_number":"6.2-409","catch_line":"Addition of unpaid interest to principal balance","url":"\/6.2-409\/","token":"6.2\/I\/4\/2\/6.2-409","metadata":false},{"id":374239,"structure_id":53215,"section_number":"6.2-410","catch_line":"Borrowers not to be required to employ particular professionals","url":"\/6.2-410\/","token":"6.2\/I\/4\/2\/6.2-410","metadata":{"court_decisions":""}},{"id":374240,"structure_id":53215,"section_number":"6.2-411","catch_line":"Requirements relating to insurance","url":"\/6.2-411\/","token":"6.2\/I\/4\/2\/6.2-411","metadata":false},{"id":374241,"structure_id":53215,"section_number":"6.2-412","catch_line":"Insurance coverage under certain loans not to exceed replacement value of improvements","url":"\/6.2-412\/","token":"6.2\/I\/4\/2\/6.2-412","metadata":false},{"id":374242,"structure_id":53215,"section_number":"6.2-413","catch_line":"Obligation of lender to reimburse unused mortgage guaranty insurance premiums","url":"\/6.2-413\/","token":"6.2\/I\/4\/2\/6.2-413","metadata":false},{"id":374243,"structure_id":53215,"section_number":"6.2-414","catch_line":"Obligation of person maintaining escrow account to pay taxes and insurance; penalties","url":"\/6.2-414\/","token":"6.2\/I\/4\/2\/6.2-414","metadata":false},{"id":374244,"structure_id":53215,"section_number":"6.2-415","catch_line":"Lender not to cancel insurance policy at time of refinancing under certain circumstances","url":"\/6.2-415\/","token":"6.2\/I\/4\/2\/6.2-415","metadata":false},{"id":374245,"structure_id":53215,"section_number":"6.2-416","catch_line":"Certain mortgages not to prohibit further encumbrance of real property","url":"\/6.2-416\/","token":"6.2\/I\/4\/2\/6.2-416","metadata":false},{"id":374246,"structure_id":53215,"section_number":"6.2-417","catch_line":"Mortgage or deed of trust to contain notice that debt is subject to call or modification on conveyance of property","url":"\/6.2-417\/","token":"6.2\/I\/4\/2\/6.2-417","metadata":false},{"id":374247,"structure_id":53215,"section_number":"6.2-418","catch_line":"Property owner entitled to written statement of payoff amount","url":"\/6.2-418\/","token":"6.2\/I\/4\/2\/6.2-418","metadata":false},{"id":374248,"structure_id":53215,"section_number":"6.2-419","catch_line":"Disclosure of terms of assumption","url":"\/6.2-419\/","token":"6.2\/I\/4\/2\/6.2-419","metadata":false},{"id":374249,"structure_id":53215,"section_number":"6.2-420","catch_line":"Prepayment penalty not to be collected in certain circumstances","url":"\/6.2-420\/","token":"6.2\/I\/4\/2\/6.2-420","metadata":false},{"id":374250,"structure_id":53215,"section_number":"6.2-421","catch_line":"Certain contracts to permit prepayment; amount of prepayment penalty","url":"\/6.2-421\/","token":"6.2\/I\/4\/2\/6.2-421","metadata":false},{"id":374251,"structure_id":53215,"section_number":"6.2-422","catch_line":"Prepayment penalty for loan secured by home occupied by borrower","url":"\/6.2-422\/","token":"6.2\/I\/4\/2\/6.2-422","metadata":false},{"id":374252,"structure_id":53215,"section_number":"6.2-423","catch_line":"Prepayment of loans secured by certain subordinate mortgages or deeds of trust; rebates for unearned interest","url":"\/6.2-423\/","token":"6.2\/I\/4\/2\/6.2-423","metadata":false}],"previous_section":{"id":374240,"structure_id":53215,"section_number":"6.2-411","catch_line":"Requirements relating to insurance","url":"\/6.2-411\/","token":"6.2\/I\/4\/2\/6.2-411","metadata":false},"next_section":{"id":374242,"structure_id":53215,"section_number":"6.2-413","catch_line":"Obligation of lender to reimburse unused mortgage guaranty insurance premiums","url":"\/6.2-413\/","token":"6.2\/I\/4\/2\/6.2-413","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/6.2-412\/","history_text":"

This law was first created in 1989. The record of its establishment is cataloged in chapter 230 of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. Unfortunately, the 1989 \u201cActs\u201d aren\u2019t available online. It has been modified 2 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 2010, chapter 794<\/a>; in 2014, chapter 247<\/a>.<\/p>","references":false,"refers_to":false,"permalink":{"id":1490519,"object_type":"law","relational_id":374241,"identifier":"6.2-412","token":"6.2\/I\/4\/2\/6.2-412","url":"\/6.2-412\/","edition_id":2,"permalink":0,"preferred":1},"url":"\/6.2-412\/","token":"6.2\/I\/4\/2\/6.2-412","dublin_core":{"Title":"Insurance coverage under certain loans not to exceed replacement value of improvements","Type":"Text","Format":"text\/html","Identifier":"\u00a7 6.2-412","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> As used in this section:\n\t\t\t“Flood insurance coverage<\/span>” means insurance against loss or damage to any property caused by flooding or the rising of the waters of the ocean or its tributaries.

\t\t\t“Property insurance coverage<\/span>” means insurance against losses or damages<\/span> caused by perils that commonly are covered in insurance policies described with terms similar to “standard fire<\/span>” or “standard fire<\/span> with extended coverage.” <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> No lender shall require a borrower, as a condition to receiving or maintaining a loan secured by any mortgage or deed of trust, to provide or purchase property insurance coverage<\/span> or flood insurance coverage<\/span> against risks to any improvements on any real property in an amount exceeding the replacement value of the improvements on the real property. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> In determining the replacement value of the improvements on any real property, the lender may: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Accept the value placed on the improvements by the insurer; or <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Use the value placed on the improvements that is determined by the lender’s appraisal of the real property. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> A violation of this section shall not affect the validity of the mortgage or deed of trust securing the loan. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nINSURANCE COVERAGE UNDER CERTAIN LOANS NOT TO EXCEED REPLACEMENT VALUE OF\nIMPROVEMENTS (\u00a7 6.2-412)\n\nA. As used in this section:\n\t\t\t“Flood insurance coverage” means insurance against loss or damage\nto any property caused by flooding or the rising of the waters of the ocean or\nits tributaries.\t\t\t“Property insurance coverage” means insurance\nagainst losses or damages caused by perils that commonly are covered in\ninsurance policies described with terms similar to “standard fire”\nor “standard fire with extended coverage.”\n\nB. No lender shall require a borrower, as a condition to receiving or\nmaintaining a loan secured by any mortgage or deed of trust, to provide or\npurchase property insurance coverage or flood insurance coverage against risks\nto any improvements on any real property in an amount exceeding the replacement\nvalue of the improvements on the real property.\n\nC. In determining the replacement value of the improvements on any real\nproperty, the lender may:\n\n 1. Accept the value placed on the improvements by the insurer; or\n\n 2. Use the value placed on the improvements that is determined by the\n lender’s appraisal of the real property.\n\nD. A violation of this section shall not affect the validity of the mortgage or\ndeed of trust securing the loan.\n\nHISTORY: 1989, c. 230, \u00a7 6.1-2.6:1; 2010, c. 794; 2014, c. 247.","edition":{"id":2,"name":"2026","slug":"2026","date_created":"2026-07-16 18:40:23","date_modified":"2026-08-02 15:14:36","current":1,"order_by":2,"last_import":"2026-08-02 12:37:30"}}