Virginia Skilled Nursing Bond — The 2026 Residents' Personal Funds Bond Guide

What does Virginia require?

Virginia regulations (12 VAC 5-371-130 et seq.) and the federal Nursing Home Reform Act require any nursing facility that holds residents' personal funds in trust to:

1. Maintain those funds separately from facility operating accounts 2. Provide each resident a quarterly statement 3. Refund the balance to the resident or their estate within 30 days of discharge/death 4. Maintain a surety bond OR an insurance policy in an amount equal to the average of all residents' personal funds for the prior 12 months

This is enforced by Virginia DSS for assisted living and Virginia VDH/CMS for nursing facilities.

Who needs the bond

• Nursing facilities (NF) and skilled nursing facilities (SNF) • Assisted living facilities (ALF) holding resident funds • Adult day services centers handling participant money • Intermediate care facilities for individuals with intellectual disabilities (ICF/IID)

If the facility never holds resident funds (rare for nursing homes), the bond may be waived in writing by the regulator.

Bond amount calculation

The required bond amount equals the average daily balance of all residents' personal funds during the prior 12 months. For a typical 60-bed Virginia nursing facility, that often works out to $25,000 – $75,000. Larger facilities (120+ beds) commonly carry $100,000 – $250,000 bonds.

If you are a new facility, the regulator will set an initial bond amount and revisit it at the first annual review.

Typical premium

Premium depends on the size of the bond and the personal credit of the operator/principal:

• $25,000 bond: $250 – $750/year • $50,000 bond: $400 – $1,500/year • $100,000 bond: $700 – $2,500/year • $250,000 bond: $1,500 – $6,000/year

Noah Insurance Agency writes these through CNA Surety, AmTrust, and Old Republic — we shop all three to land the lowest no-collateral premium.

Filing process

1. We bind the bond with the surety. 2. We mail you the original signed bond document and power of attorney. 3. You include the bond with your VDH or DSS licensure renewal package. 4. Most facilities also pair this bond with Employee Dishonesty insurance (which DOES cover the facility against employee theft) — we typically write both at once.

Get a Virginia skilled nursing bond same-day

If you're racing a VDH or DSS licensure deadline, tell us up front and we'll prioritize. Most Virginia facility bonds are quoted in 30 minutes and bound the same business day. Call 814-718-0060 or quote at noahia.com.