One of the easiest ways to save money on title insurance in Virginia is a discount many buyers never ask about: the reissue credit. It is a simple question that can lower your premium, and yet it often goes unclaimed. Let me show you how it works.
Written by Adam L. Engel, Esq., Principal and real estate attorney at Prime Title & Escrow
Title insurance is a one time cost, but that does not mean the price is fixed. Virginia recognizes a discount called a reissue credit, and qualifying for it can take real money off your closing. Here is when it applies and how to claim it.
A reissue credit is a discount on your title insurance premium. The Virginia State Corporation Commission explains that you may qualify on a purchase if the seller previously bought an owner’s policy, and on a refinance if you previously bought one yourself. The prior policy can be from any company.
On a purchase
When you buy, you may earn a reissue credit if the seller already has an owner’s policy on the property, regardless of which company issued it. The Virginia State Corporation Commission notes that the seller may need to produce that prior policy so your title agent can calculate the credit accurately. This is a good reason to ask the seller early whether they bought an owner’s policy when they purchased the home, and to track down the paperwork.
On a refinance
The credit also applies when you refinance, if you bought an owner’s policy when you first purchased the property. A refinance requires a new lender’s policy, since the old loan is replaced, and a reissue credit can reduce the premium on that new policy. I cover the whole refinance picture in title insurance on a refinance.
Any company counts
A point worth repeating, because it surprises people: on a purchase, the prior owner’s policy does not have to come from the same company you are using. The Virginia State Corporation Commission is explicit that the credit can apply no matter which company issued the seller’s earlier policy. What matters is that a qualifying policy exists and can be documented.
The size of the credit depends on the insurer and on the amount of the prior policy, since it generally applies up to that earlier policy’s coverage amount. Because the savings turn on your specific numbers, the right move is to have your title agent calculate it for your transaction. When I prepare your title insurance quote, I check whether a reissue credit applies.
Just ask
The reissue credit is the rare discount with no downside to asking. Raise it with your settlement agent early, have the seller look for their prior policy, and let your title agent do the math. If a qualifying policy exists, you save. If it does not, you have lost nothing. For the full set of charges it can reduce, see title and settlement fees and your overall closing costs in Virginia.
A few practical notes help. Insurers can set conditions on the credit, such as how the prior policy is documented, so the earlier you locate the seller’s policy, the smoother the calculation. If the seller cannot find it, the title company can sometimes confirm a prior policy through its own records or the underwriter. The effort is usually worth it, since the credit comes straight off your premium. I raise the question on every file where a prior policy seems likely, so the savings are not left on the table.
Reissue credits apply on residential and commercial transactions across Virginia and West Virginia. The details vary by insurer, but the habit is the same everywhere: ask early, document the prior policy, and let the credit lower your bill. I am glad to check your eligibility.
Send me your details and the seller’s prior policy if you have it, and I will check whether a reissue credit can lower your premium.
Get Your Free Quoteor call (703) 552-4155Frequently asked questions
What is a reissue rate on title insurance?
A reissue rate, or reissue credit, is a discount on the title insurance premium. The Virginia State Corporation Commission explains that you may qualify on a purchase if the seller previously bought an owner’s policy, and on a refinance if you previously bought one yourself.
How do I qualify for a reissue credit in Virginia?
On a purchase, you may qualify if the seller has a prior owner’s policy, no matter which company issued it. The seller may need to produce that policy so the credit can be calculated. On a refinance, you may qualify if you bought an owner’s policy when you purchased the home.
Does the prior policy have to be from the same title company?
No. The Virginia State Corporation Commission states that a reissue credit on a purchase can apply regardless of which company issued the seller’s prior owner’s policy. What matters is that a qualifying prior policy exists and can be documented.
How much can a reissue credit save me?
It varies by insurer and by the size of the prior policy, since the credit generally applies up to the amount of that earlier policy. Because the savings depend on your numbers, ask your title agent to calculate it for your specific transaction.
Should I ask about a reissue credit even if I am not sure I qualify?
Yes. It is a simple question with no downside. Ask your settlement agent early, and have the seller look for their prior policy. If a qualifying policy exists, the credit can lower your closing costs.
This article is general information about title insurance reissue credits in Virginia and West Virginia. It is not legal or financial advice for your specific transaction, and eligibility and savings depend on the prior policy and the insurer. Please confirm the details with me directly.