What types of insurance do I need for real estate transactions?

Real estate transactions in Virginia typically require multiple types of insurance. These include liability insurance, title insurance, and mortgage insurance. Liability insurance protects against any financial losses stemming from any harm to persons or property that occur at a property. This can include a guest getting injured on the property or a structure on the property becoming damaged. Title insurance is a type of required insurance that protects against any mistakes in the title of a property or any other type of issue that arises when transferring the title. It is a one-time premium that is typically paid by the buyer, and it protects against any liability resulting from title issues. Mortgage insurance is insurance that is required when the buyer does not have at least a 20% down payment on a real estate purchase. This insurance protects the lender if the borrower defaults on the mortgage. These insurance types are typically necessary for real estate transactions in Virginia. Depending on the specific circumstances of the transaction, there may be additional types of insurance that are necessary. It is important to consult with a real estate attorney or other professional to ensure that you have the proper insurance coverage for your transaction.

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