What Title Insurance Covers in Florida

Homeownership marks an important financial milestone for many families, but as you know, buying a home is so much more than just a financial investment. Your home becomes the place where memories are made and family roots are planted.

Before you close on your home, you will face a multitude of questions and have numerous documents to sign. One of which will be related to title insurance. For more on what title insurance is and why you need it, read our post on the topic here.

What to Know About Title Insurance in Florida

There are two primary types of title insurance – a lender’s policy, which is required by the lender if you are borrowing money for the property, and an owner’s policy, which is optional though highly recommended.

When you purchase an owner’s policy, title insurance covers your right to the property for as long as you or your heirs own it. What’s covered, you ask? Pretty much any challenge to your title. For example:

  • You are protected in the event that other parties make a claim to the property.
  • You are protected you from any outstanding debts owed by previous property owners or liens for unpaid taxes.
  • You are protected if there is a fraudulent or forged prior deed.
  • You are protected if there are past mistakes in recording of the legal documents.
  • And the list goes on.

If there were to be a challenge to your title or unforeseen hazard, you would be protected up to the sale price of your property.

How Much Does Title Insurance Cost?

In Florida, title insurance rates are set by the Florida Administrative Code. Rule 69O-186.003 specifies rates for all types of title insurance scenarios, including original owner and leaseholder title insurance coverage, reissue rates (if a prior owner’s policy exists), a new home purchase discount, substitution loan rates, and other situations.

Keep in mind that title insurance requires just a one-time premium payment. With that premium payment, the policy will remain in effect for as long as you or your heirs own the property. Generally, the payment is less than one percent of the home’s purchase price, which makes it a worthwhile investment to protect something as important (and expensive) as a home.

For all of your title insurance and real estate law questions, get in touch with us at Silverberg|Brito, PLLC. We can help you understand your options and decipher insurance policies so you stay protected.