The most practical question buyers ask about title insurance is simply what it costs. The honest answer has a few moving parts, including one feature of Virginia law that surprises people: you can shop. Let me explain how the premium works and how to keep it reasonable.
Written by Anthony I. Shin, Esq., Principal and real estate attorney at Prime Title & Escrow
Title insurance is a one time premium, not a recurring bill, and the amount depends mostly on your purchase price and loan amount. But Virginia handles title rates in a way that gives you more room to compare than many buyers realize.
Title insurance is a single premium based largely on the price and the loan amount. The Virginia State Corporation Commission explains that insurers establish their own rates and may negotiate them, and it advises consumers to shop around. So the base premium can differ from one company to the next, and it is worth comparing.
A one time premium tied to value
The owner’s policy premium is based on the property’s value, typically the sales price, and the lender’s policy on the loan amount. You pay it once at closing, and the owner’s coverage then lasts for as long as you or your heirs own the home. There is no renewal, which is part of what makes title insurance different from the insurance you pay for every year.
Virginia lets you shop
Here is the feature worth knowing. In Virginia, title insurers file their rate schedules with the State Corporation Commission, but they set their own rates rather than all charging an identical promulgated price. The Commission itself encourages consumers to shop around and compare. When you compare, look beyond the policy premium to the ancillary charges too, since those vary.
The search and settlement are separate
By law, the title insurance risk premium in Virginia does not include the cost of the title search, the examination, escrow, or closing services. Those are separate charges on your statement, which I break down in title and settlement fees. Keeping them separate is exactly why your estimate lists the policy premium apart from the work that supports it.
Who pays
Who pays for the policies is set by local custom and is negotiable. When you finance, the buyer generally pays for the lender’s policy. The owner’s policy is the buyer’s choice, and which party pays for it varies across Virginia and is something the contract can address. I cover the broader split in who pays closing costs in Virginia.
One easy way to lower the premium is to ask whether you qualify for a reissue credit. The Virginia State Corporation Commission explains that you may earn this discount on a purchase if the seller previously bought an owner’s policy, no matter which company issued it, and on a refinance if you previously bought one yourself. It is a simple question with real savings, which I detail in the reissue rate.
Getting a real number
Because the premium depends on your specific price and loan, and because companies differ, the only reliable figure is a quote built from your numbers. I am glad to prepare one as part of a full estimate, alongside the rest of your closing costs in Virginia and your cash to close.
One more way to keep the cost down is built into how the policies are issued. When you buy an owner’s and a lender’s policy at the same closing, the lender’s policy is usually issued at a reduced simultaneous issue rate rather than at full price. Buying both together generally costs less than buying them separately, and I make sure that pricing is applied when it should be.
These cost principles apply on residential and commercial purchases across Virginia and West Virginia, with each state’s insurers filing rates under their own regulator. The surest path to a fair price is a real quote and a willingness to compare, both of which I am happy to help with.
Send me your contract and I will quote your owner’s and lender’s policies and check whether you qualify for a reissue credit.
Get Your Free Quoteor call (703) 552-4155Frequently asked questions
How much does title insurance cost in Virginia?
Title insurance is a one time premium based largely on the purchase price and the loan amount. The Virginia State Corporation Commission notes that companies set their own rates and you can shop around, so the price can vary by insurer. I quote it for your specific transaction rather than guess at a number.
Are Virginia title insurance rates set by the state?
No. Insurers file their rates with the Virginia State Corporation Commission, but each company sets its own rates and may even negotiate them. The Commission advises consumers to shop around, since the base premium can differ between companies.
Who pays for title insurance in Virginia?
It depends on local custom and is negotiable. When you finance, the buyer generally pays for the lender’s policy. The owner’s policy is the buyer’s choice, and which side pays for it varies by region and by what the parties agree to in the contract.
Is the title search fee part of the title insurance premium?
No. Under Virginia law, the risk premium does not include charges for the title search, examination, escrow, or closing services. Those are separate line items, which is why your estimate lists them apart from the policy premium.
Can I lower my title insurance cost?
Sometimes. Ask whether you qualify for a reissue credit, which applies if the seller had a prior owner’s policy or, on a refinance, if you previously bought one. You can also compare insurers and ancillary fees, since the Commission encourages shopping around.
This article is general information about title insurance costs in Virginia and West Virginia. It is not legal or financial advice for your specific transaction, and premiums vary by price, loan, insurer, and locality. Please confirm the numbers that apply to your closing with me directly.