How Much Is Title Insurance in Virginia?
When it comes to real estate transactions, whether you’re buying a home or a commercial property, title insurance is a necessary part of the process. Title insurance is typically required by the lender if there is a loan involved in the purchase, but purchasing your own buyer's title insurance is usually a good idea.
If this is your first time buying a home or a property, you may be wondering how much title insurance costs in Virginia. Rates may vary from state to state and there are a variety of other factors that affect the cost. Here’s what you need to know about title insurance.
What is Title Insurance?
Title insurance provides financial protection during real estate transactions if a case were to arise where ownership of the property is contested. In other words, if someone other than the seller were to claim ownership of the property, it could lead to financial losses for everyone involved, including the buyer, seller, and lender. How does this happen?
Somewhere along the way there may have been a mistake made in the title records, an unknown heir could come forward, or there may be a contractor’s lien due to unpaid work that was done on the property. These things happen more often than you might think, and when they do, it can be costly for all parties involved. This is what title insurance is for.
How Much Does Title Insurance Cost?
A typical title insurance policy that includes lender’s and owner’s insurance will cost around 0.5% to 1% of the purchase price of the property. It is possible to purchase just a lender's title insurance policy, but it only protects the lender in the case of a title issue, not the buyer.
The cost of title insurance may vary by state as well as other factors, but the range of 0.5% to 1% is the average. Your quote will most likely fall somewhere in that range depending on whether or not the policy covers both the lender and the buyer, among other factors.
What Goes Into the Title Insurance Cost in Virginia?
When you purchase title insurance, you are essentially paying for the title insurance process. This process involves the following:
Title search. A thorough title search will be conducted, which involves reviewing the title records and establishing a clear chain of title with no interruptions or missing information. The search also involves checking for liens on the property.
Title report. From this search a report is created that shows the results of the title search. This can be reviewed by all parties involved in the transaction.
Attorney’s fees. If there are any complications that arise during the title search, an attorney may need to be involved to help sort out the legalities involved in the transaction.
The insurance premium. This is the cost of the policy itself.
Other fees. There may be other miscellaneous fees that arise and will be included in the cost of the policy.
Is Buyer’s Title Insurance Worth the Cost?
You may be wondering, do I need title insurance? Title insurance in VA is required by all lenders who finance real estate loans. The buyer’s policy is optional, but highly recommended. Even before a property purchase is finalized at the closing, the buyer invests money into the process of buying the home. If a title issue arises, you stand to lose all of your investment at any point. But title insurance pays for your financial losses if ownership is contested.
Get the Protection You Need From American Guardian Title
When it comes to title insurance, you need a name you can trust to provide a comprehensive policy that will cover your needs. American Guardian Title is a reliable provider of both lender’s and buyer’s title insurance policies in Virginia, Florida, Maryland, Tennessee, and Georgia. A combination policy is likely in your best interest to save money and protect your investment.
Call or contact us at 833-331-8476 or 813-331-3010 today for a title insurance quote. We look forward to providing you with the title insurance coverage you need to protect you financially in your real estate transaction.