Virginia Title Insurance Frequently Asked Questions

Title insurance is an insurance policy that protects the insured against loss should the condition of title to land be other than as insured.

When you buy a home, or any property for that matter, you expect to enjoy certain benefits from ownership. For example, you expect to be able to occupy and use the property as you wish, to be free from debts or obligations not created or agreed to by you, and to be able to freely sell or pledge your property as security for a loan. Title insurance is designed to ensure these rights.

The cost varies, depending mainly on the value of your property. The important thing to remember is that you only pay once, and the coverage continues in effect for so long as you have an interest in covered property. If you should die, the coverage automatically continues for the benefit of your heirs. If you sell your property, giving warranties of title to your buyer, your coverage continues. Likewise, if a buyer gives you a mortgage to finance a purchase of covered property from you, your coverage continues to protect your security interest in the property.

Not at all. At the mere hint of a claim adverse to your title, you should contact your title insurer or the agent who issued your policy. Title insurance includes coverage for legal expenses that may be necessary to investigate, litigate or settle an adverse claim.

The lender's policy covers only the amount of it's loan, which is usually not the full property value. In the event of an adverse claim, the lender would ordinarily not be concerned unless it's loan became non-performing and the claim threatened the lender's ability to foreclose and recover its principal and interest. And, in the event of a claim, uninsured party must cover their own legal expenses. All in all, the small additional expense of an owner's policy is a bargain.

Standard Coverage addresses:

• forgery and impersonation

• lack of competency, capacity or legal authority of a party

• deed not joined in by a necessary party (co-owner, heir, spouse, corporate officer, or business partner)

• undisclosed (but recorded) prior mortgage or lien

• undisclosed (but recorded) easement or use restriction

• erroneous or inadequate legal descriptions

• lack of a right of access

• deed not properly recorded

First American's Eagle Policy covers all of the risks listed above plus:

• off-record matters, such as claims for adverse possession or prescriptive easement

• deed to land with buildings encroaching on land of another (incorrect survey)

• silent (off-record) liens, such as mechanic's or estate tax liens

• pre-existing violations of subdivision laws, zoning ordinances or CC&R's (Covenants, Conditions & Restrictions)

• post-policy forgery

• forced removal of improvements due to lack of building permit (subject to deductible)

• post-policy construction of improvements by a neighbor onto insured land

• location and dimensions of insured land (survey not required)