*Estimates are based on common underwriter rates in Virginia (e.g., Fidelity, Stewart, First American). Actual rates may vary by specific underwriter and endorsements required. This tool provides an approximation for planning purposes.
Understanding Virginia Title Insurance Rates
When purchasing real estate in Virginia, title insurance is a critical component of closing costs. Unlike other forms of insurance that protect against future events, title insurance protects you against defects in the title to your property that may have occurred in the past. This calculator helps estimate the costs associated with both the Owner's Policy and the Lender's Policy based on current Virginia rate structures.
How Premiums Are Calculated in VA
In Virginia, title insurance premiums are generally calculated based on a tiered system "per thousand" dollars of coverage. While rates are not set by the state government (unlike in Florida or Texas), most underwriters follow a similar pricing schedule. As the purchase price or loan amount increases, the rate per thousand typically decreases.
Tier 1: Coverage up to $250,000 typically has the highest rate per thousand.
Tier 2: Amounts between $250,000 and $500,000 are charged at a lower rate.
Tier 3: Amounts over $500,000 see further reductions in the rate per thousand.
Owner's vs. Lender's Policies
There are two primary types of title insurance policies issued during a transaction:
1. Owner's Policy: This protects the buyer's equity in the property. The coverage amount is usually equal to the purchase price. It protects you for as long as you or your heirs own the property.
2. Lender's Policy: Almost all mortgage lenders require this. It protects the bank's interest in the property up to the loan amount. The policy amount decreases as you pay down your mortgage.
Simultaneous Issue
If you are buying a home and obtaining a mortgage, you will likely purchase both policies. In Virginia, when bought together, you benefit from a "Simultaneous Issue" rate. You typically pay the full premium for the Owner's Policy (based on the sale price) and a nominal fee (often around $100-$250) for the Lender's Policy, provided the loan amount does not exceed the purchase price.
Standard vs. Enhanced Coverage
Homebuyers in Virginia often have the choice between a Standard policy and an Enhanced (often called "Eagle" or "Homeowner's") policy.
Enhanced policies generally cost about 20% more than standard policies but offer broader coverage, including protection against certain post-policy forgery, encroachments, and building permit violations. The calculator allows you to toggle between these options to see the cost difference.
Who Pays for Title Insurance in Virginia?
By local custom in Virginia, the purchaser usually pays for both the Owner's and Lender's title insurance premiums. However, this is a negotiable term in the sales contract. It is crucial to review your purchase agreement to confirm who is responsible for these closing costs.
function toggleInputs() {
var transType = document.getElementById('transactionType').value;
var salesGroup = document.getElementById('salesPriceGroup');
var salesInput = document.getElementById('salesPrice');
if (transType === 'refinance') {
salesGroup.style.display = 'none';
salesInput.value = ";
} else {
salesGroup.style.display = 'block';
}
}
function calculateTieredPremium(amount) {
if (amount 0) {
// Calc Tier 2
var chunk2 = Math.min(remaining, tier2Limit – tier1Limit);
premium += chunk2 * tier2Rate;
remaining -= chunk2;
}
if (remaining > 0) {
// Calc Tier 3
var chunk3 = Math.min(remaining, tier3Limit – tier2Limit);
premium += chunk3 * tier3Rate;
remaining -= chunk3;
}
if (remaining > 0) {
// Calc Tier 4
var chunk4 = Math.min(remaining, tier4Limit – tier3Limit);
premium += chunk4 * tier4Rate;
remaining -= chunk4;
}
if (remaining > 0) {
// Calc Tier 5
premium += remaining * tier5Rate;
}
return premium;
}
function calculateVARates() {
var transactionType = document.getElementById('transactionType').value;
var policyType = document.getElementById('policyType').value;
var salesPrice = parseFloat(document.getElementById('salesPrice').value) || 0;
var loanAmount = parseFloat(document.getElementById('loanAmount').value) || 0;
var ownersPremium = 0;
var lendersPremium = 0;
var totalPremium = 0;
var enhancedMultiplier = (policyType === 'enhanced') ? 1.20 : 1.0;
if (transactionType === 'purchase') {
// Valid purchase scenario requires sales price
if (salesPrice 0) {
// If there is a loan, lenders policy is simultaneous issue fee ($175 avg estimate)
// If loan amount > sales price (uncommon but possible), add difference premium
var simIssueFee = 175;
lendersPremium = simIssueFee;
if (loanAmount > salesPrice) {
var diff = loanAmount – salesPrice;
// Calculate premium for the difference using the tier it falls into
// We calculate full premium for loan amount and subtract full premium for sales price to get strict differential
var fullLoanPrem = calculateTieredPremium(loanAmount);
var fullSalesPrem = calculateTieredPremium(salesPrice);
lendersPremium += (fullLoanPrem – fullSalesPrem);
}
}
} else {
// Refinance Scenario
if (loanAmount <= 0) {
alert("Please enter a valid Loan Amount.");
return;
}
// In a refi, there is no owner's policy usually, just lender's.
// Refi rates are often "Reissue rates" which are roughly 60-70% of standard.
// We will use 70% of standard rate as a safe estimate for refi.
var baseRefi = calculateTieredPremium(loanAmount);
lendersPremium = baseRefi * 0.70; // 30% discount for Refi estimation
ownersPremium = 0;
}
// Rounding
ownersPremium = Math.round(ownersPremium * 100) / 100;
lendersPremium = Math.round(lendersPremium * 100) / 100;
totalPremium = ownersPremium + lendersPremium;
// Display
document.getElementById('ownersPolicyDisplay').innerText = "$" + ownersPremium.toLocaleString('en-US', {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('lendersPolicyDisplay').innerText = "$" + lendersPremium.toLocaleString('en-US', {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('totalPremiumDisplay').innerText = "$" + totalPremium.toLocaleString('en-US', {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('resultSection').style.display = 'block';
}