Reusable rockets must rely on well-designed Guidance, Navigation and Control (GNC) algorithms. Because they are tested and verified in closed-loop, high-fidelity simulators, emphasizing the strategy to achieve such advanced models is of paramount importance. A wide spectrum of complex dynamic behaviors and their cross-couplings must be captured to achieve sufficiently representative simulations, hence a better assessment of the GNC performance and robustness. This paper focuses on of the main aspects related to the physical (acausal) modeling of reusable rockets, and the integration of these models into a suitable simulation framework oriented towards GNC Validation and Verification (V&V). Firstly, the modeling challenges and the need for physical multibody models are explained. Then, the Vertical Landing Vehicles Library (VLVLib), a Modelica-based library for the physical modeling and simulation of reusable rocket dynamics, is introduced. The VLVLib is built on specific principles that enable quick adaptations to vehicle changes and the introduction of new features during the design process, thereby enhancing project efficiency and reducing costs. Throughout the paper, we explain how these features allow for the rapid development of complex vehicle simulation models by adjusting the selected dynamic effects or changing their fidelity levels. Since the GNC algorithms are normally tested in Simulink®, we show how simulation models with a desired fidelity level can be developed, embedded and simulated within the Simulink® environment. Secondly, this work details the modeling aspects of four relevant vehicle dynamics: propellant sloshing, Thrust Vector Control (TVC), landing legs deployment and touchdown. The CALLISTO reusable rocket is taken as study case: representative simulation results are shown and analyzed to highlight the impact of the higher-fidelity models in comparison with a rigid-body model assumption.