Do You Need Title Insurance In Virginia?

What would happen if someone claimed a right to your new Portsmouth home after closing? Title issues are rare, but when they show up, they can be expensive and stressful. If you are buying or selling in Virginia, you have probably heard about title insurance and wondered if you really need it. In this guide, you will learn what title insurance covers, how it works in Virginia, what is common in Portsmouth, what it costs, and how to protect yourself. Let’s dive in.

Title insurance, explained

Title insurance protects you from financial loss caused by past problems with a property’s title that were not found in a title search. Think unknown heirs, forged documents, unpaid liens, or clerical errors in public records.

There are two types of policies:

• Lender’s title insurance. If you use a mortgage, your lender will usually require this. It protects the lender up to the loan amount for the life of the loan.
• Owner’s title insurance. This is optional, but it protects you, the homeowner, for as long as you own the property. It typically covers legal defense costs and losses up to your policy amount.

You pay the title insurance premium once at closing. It is not a monthly fee. The cost depends on your purchase price, the insurer’s rate schedule, and any added endorsements.

Virginia and Portsmouth norms

In Virginia, lenders commonly require a lender’s policy with a mortgage. An owner’s policy is optional by law, but most real estate and legal professionals recommend it because it protects your equity.

Who pays for the owner’s policy varies. In many Virginia markets, sellers often pay, but in others the buyer pays or the parties split the cost. Local custom and your contract decide this, so make sure the purchase agreement clearly states who covers the owner’s policy if that matters to you.

Closings are typically handled by licensed title companies or settlement attorneys. A title search is performed, and a title commitment is issued before closing. Title insurance companies and agents must be licensed under Virginia insurance regulations. You can verify licensing and file complaints with the state insurance regulator.

Portsmouth risk factors to know

Portsmouth has a mix of older neighborhoods and waterfront parcels. That combination can increase certain title risks. Be aware of:

• Age of housing stock. Older deeds and chain-of-title gaps can surface decades later.
• Waterfront and riparian issues. Shoreline boundaries and public trust or riparian rights can be complex. Some parcels may also have maritime liens.
• Utility and access easements. Older subdivisions can carry easements that are not obvious during a quick walkthrough.
• Municipal liens and taxes. Always confirm tax status and check for special assessments, including stormwater fees.
• Condo or HOA matters. Attached communities often come with recorded covenants and association documents that appear as title exceptions.

What owner’s policies typically cover

An owner’s policy generally covers:

• Defects from prior ownership, such as forged signatures or improperly executed documents.
• Undisclosed heirs who later claim an interest.
• Errors or omissions in public records.
• Unknown liens that existed before closing, including tax or judgment liens and certain mechanic’s liens.

Some survey and encroachment issues are covered only if you add an endorsement. Ask your settlement agent what is included and what needs extra coverage.

What title insurance does not cover

Title insurance has exclusions and exceptions. Common limits include:

• Items shown as exceptions on the title commitment, such as recorded easements and covenants.
• Issues a current survey or basic property inspection would have revealed, unless you buy endorsements that expand coverage.
• Zoning or building code compliance. Title insurance does not insure against regulatory issues.

It is still wise to order a home inspection, review zoning or permitting questions with the city, and request a survey when boundaries are uncertain.

Endorsements that may be worth it

Endorsements extend your coverage to address property-specific risks. In Portsmouth, buyers often consider:

• Survey or encroachment endorsements. Helpful if fences, sheds, or docks are near property lines.
• Access endorsements. Useful if a parcel’s access point is unclear or depends on an easement.
• Condominium endorsements. Addresses condo-specific risks noted in the declaration and plats.
• Waterfront-related endorsements. In some cases, endorsements can help address shoreline, encroachment, or situs concerns. Discuss options with your title agent.

These add-ons cost extra but can be valuable for waterfront homes, older parcels, or properties without a recent survey.

Costs and timing

You pay for title insurance one time at closing. The price depends on the home’s value, the insurer, and any endorsements you choose. Ask the title company for a written estimate early so you can compare options and budget.

If you refinance later, your new lender will usually require a new lender’s policy for that loan. Your owner’s policy continues to protect you. Some lenders and title companies may offer reissue credits or other savings, but local practice varies. Ask your lender and title agent for details.

How to review your title commitment

Before closing, you will receive a title commitment that outlines the proposed coverage and lists exceptions. Review it carefully and ask questions about anything you do not recognize. A practical approach is:

1. Read the requirements section to see what must be cleared before closing.
2. Review the exceptions list, including easements, covenants, and any liens.
3. Ask if survey or access endorsements would remove or reduce specific exceptions.
4. Work with your agent and settlement team to resolve any open items in writing.

For complex issues, consult a local real estate attorney before you sign.

Buyer checklist for Portsmouth

• Request the title commitment as soon as it is ready and read the exceptions.
• Confirm whether your quote includes an owner’s policy. If not, get a written estimate for the policy and any endorsements.
• Order or review a recent survey, especially for waterfront or older parcels.
• Confirm tax status and ask about special assessments with local offices.
• If exceptions raise questions, consult a licensed title agent or a real estate attorney.

Seller checklist for Portsmouth

• Discuss local custom on who pays for the owner’s policy and set expectations in your listing agreement.
• Clear known liens, judgments, unpaid taxes, or code issues before going under contract when possible.
• Gather prior title work, recorded plats, and permits to help speed the title exam.
• Agree in the contract how title defects and clearance costs will be handled.

When might you skip owner’s coverage?

Owner’s coverage is optional. Some buyers choose not to purchase it, but you assume the risk of unknown defects that could affect your equity later. Because even thorough title searches can miss issues, many Portsmouth buyers view an owner’s policy as affordable, long-term protection for a large asset.

Bottom line for Virginia buyers and sellers

In Virginia, your lender will usually require a lender’s policy if you use a mortgage. An owner’s policy is not required by law, but it is strongly recommended to protect your equity and cover legal defense if a title claim appears later. Given Portsmouth’s older records, waterfront parcels, and varied easements, it makes sense to secure owner’s coverage and to review endorsements that fit your property.

If you want help comparing quotes, reading a title commitment, or deciding on endorsements for a Portsmouth home, reach out to The Foundry Group. Our local team guides you through closing with clear steps, steady communication, and disciplined execution.

FAQs

Do I need title insurance in Virginia?

• Lenders usually require a lender’s policy with a mortgage, but an owner’s policy is optional. Most professionals recommend owner’s coverage to protect your equity for as long as you own the home.

Who typically pays for owner’s title insurance in Portsmouth, VA?

• There is no single rule. In many Virginia transactions the seller often pays, but local custom and your contract control. Make sure the purchase agreement states who will pay.

How much does owner’s title insurance cost in Virginia?

• It is a one-time premium paid at closing, based on your purchase price, insurer, and any endorsements. Ask your title company for a written estimate early in the process.

What happens if I decline owner’s title insurance?

• You keep the risk of future title defects and legal costs. Lender’s coverage protects the lender, not you, so you would handle claims and expenses out of pocket.

Does title insurance cover survey issues on waterfront lots?

• Not always. Some survey or encroachment issues require endorsements. In Portsmouth, it is smart to review a current survey and ask about endorsements tailored to waterfront parcels.

If I refinance, do I need a new title policy?

• Your new lender will require a new lender’s policy for the new loan. Your owner’s policy stays in place and continues to protect you; ask about possible reissue credits when you refinance.