Polyvinyl alcohol- (PVA-) based aerogels have attracted widespread attention owing to their low cost, eco-friendliness, and low density. However, the applications of PVA-based aerogels are limited by their flammability. In this study, a flame retardant, ammonium polyphosphate (APP), and a biopolymer, chitosan (CS), were added to polyvinyl alcohol (PVA), and the polymer was further crosslinked using boric acid (H3BO3). In the PVA aerogels, the negatively charged APP and positively charged CS formed a polyelectrolyte complex (PEC) through ionic interaction. Cone calorimetry and vertical burning tests (UL-94) indicated that the PVA composite aerogels have excellent flame retardancy; they could decrease the heat release rate, total heat release rate, and carbon dioxide (CO2) generation. Both PVA/H3BO3 and APP-CS in the composite aerogel could be burned to carbon, and the foamed char layer could act together to impart the PVA composite aerogels with good flame retardancy. Further, the decrease in the temperature at the backside of the aerogels with increasing APP-CS content, as determined by the flame-spraying experiment, indicated that the PVA-based aerogels with APP-CS can also serve as thermal insulation materials. This work provides an effective and promising method for the preparation of PVA-based aerogels with good flame retardancy and thermal insulation property for construction materials.