Understanding Title Insurance:
Title insurance in Florida
What it covers, what it costs, who pays, and how a Florida closing gets to a policy.
What title insurance covers
Title insurance protects against loss from problems with ownership that existed before you bought: forged or improperly recorded documents, unknown liens, another person claiming an ownership interest, and other defects listed in the policy. You pay the premium once, at closing.
Owner’s policy and lender’s policy
Owner’s policy: protects the buyer’s ownership for as long as they own the property. In a cash purchase no lender requires a policy, so the owner’s policy is the buyer’s only title coverage.
Lender’s policy: protects the mortgage lender. Lenders require it, and the buyer pays for it in every Florida county.
What it costs in Florida
Florida sets title insurance premiums by rule (Florida Administrative Code, Rule 69O-186), so the premium for the same policy is the same at every title company. The rate starts at $5.75 per $1,000 of coverage for the first $100,000 and $5.00 per $1,000 from $100,000 to $1 million. Search, endorsement and closing charges are separate. Get an exact title quote.
Who pays, and who chooses the title company
It depends on the county and the contract. In Miami-Dade and Broward, the buyer customarily pays for the owner’s policy and chooses the title company. In most other Florida counties the seller customarily pays. The purchase contract decides either way, so check it before you sign.
How a Florida closing gets to a policy
- We search the public records on the property.
- We issue a title commitment listing what must be resolved before closing.
- Those requirements are cleared: payoffs, releases, association and lender items.
- The closing takes place and the documents are recorded with the county.
- The title policy is issued.
What is escrow?
Escrow means a neutral party, here the title company, holds the deposit and closing funds until every condition of the sale is met, then disburses them. Always verify wire instructions with us before sending funds.
Closing in Florida?
Put the file with a team that finds problems early.
Licensed title, escrow and closing services backed by Stewart Title. Buyers, sellers, agents and lenders can open a file securely or talk to our closing team first.