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November 22, 2022

How much is title insurance in Florida?

When purchasing a house or any type of real estate, one of your top priorities should be to ensure you have legal ownership of the property, including ownership rights and interests. In case the title is incorrect, faulty, or even burdened with unsettled legal claims, you may be in for a high-risk transaction. A title insurance policy can protect you and ensure peace of mind during your real estate transactions. Still, residential and commercial real estate law and rates can vary significantly between different states and sometimes even counties and cities. If you’re wondering how much is title insurance in Florida, stay with us as we review all the critical aspects of a title and find out how title insurance companies can help you get the best out of your next real estate purchase.

 

What Is Title Insurance?

Title insurance is a crucial requirement for property acquisition; it determines the rights, legal ownership, as well as interest of a property. Simply put, this insurance protects you against any liabilities that may accompany your property ownership. Possible title defects include the following:

 

  •    -Errors in public records
  •    -Illegal Records 
  •    -Forgeries 
  •    -Undiscovered encumbrances
  •    -Missing heirs
  •    -Unknown easements
  •    -False impersonation
  •    -Bounders/ Survey Dispute
  •    -Undiscovered wills
  •    -Unknown Liens
  •  
  • There are two different types of title insurance:

Owner’s title insurance policies – protect the homeowner for as long as they own the property, and

  • A lender’s title insurance policies – also known as loan policies, protect the lender’s rights until the loan is paid off.
  • Issuing a title insurance policy requires several essential steps to ensure the property title is clear and there are no defects that may put the owner at risk. Some of those steps include a thorough O&E search, full title search, land record database search, and municipal lien search in Florida. A title agent can then work on clearing any irregularities in the title and handling title insurance contracts before proceeding to the closing.

 

The difference between homeowner’s insurance and title insurance

It’s important to clearly distinguish the homeowner’s insurance and title insurance policy. To begin with, title insurance does not protect you from future risks that may affect your property; instead, it protects you from potential losses due to defects in the title. Before issuing a title insurance policy, a Florida title insurance company will search and examine title plants and public records to identify claims, liens, or encumbrances on the property, as well as alert you to possible title defects. If you’re wondering how much title insurance is in Florida, it’s essential to know that the premium cost is essentially a one-time fee payable at the time of escrow closing.

On the other hand, homeowner’s insurance protects your real estate property and may provide coverage for losses due to fire or lightning, vandalism, theft, as well as personal liability claims brought against you as the policyholder. Homeowners’ premiums are typically billed monthly, quarterly, or annually. Installment payment options are also available. 

 

What Is Included In Title Insurance?

When buying an owner’s title insurance, you’re protecting your right of ownership – provided you own the property. Since this type of insurance essentially protects you from any previous title defects, it has to include the following:

 

Liens – Contractors sometimes put liens on the real estate property during the remodeling phase to claim unpaid dues afterward. Title insurance keeps you safe from financial liability by enabling you to uncover any undisclosed liens during the title search process.

  • Legal Claims – Legal claims can affect your right to own the newly acquired property. Having a title policy means the title insurers will defend the claim on your behalf or pay legal fees arising from the suit.
  • Title or Ownership Defects – The owner’s title insurance policies protect you against numerous defects in ownership documents and unpaid taxes. Your insurer may also cushion you against scammers who may try to replace your name in the title.
  • Undisclosed Heirs and Forgery – It’s not uncommon for a property to have undisclosed issues at the time of buying. Such matters include undisclosed easements, heirs, erroneous legal descriptions, and forgery; therefore, working with a professional title company in Miami can help you rest assured knowing your real estate is in good hands.

How Much Does Title Insurance Policy Cost In Florida?

As mentioned previously, title insurance costs can vary significantly from state to state, just like real estate taxes. If you’re wondering how much title insurance is in Florida, we’ll strive to provide you with an accurate example of how the pricing works in this state.

To begin with, the State Department of Financial Services collaborates with financial institutions to set the title insurance cost. This price varies between $500-$1500, depending on a few different factors. 

Apart from the premium thresholds that the Florida State Government sets, there are some additional factors that contribute to the cost of your title insurance. Those factors include:

 

  •    -Whether the property has the previous owner’s insurance
  •    -The location of the property
  •    -Whether you’re buying the seller’s or owner’s title insurance policy (or both)
  •    -If you’re refinancing or purchasing a new property

   -The Florida State Department utilizes a set of five premium categories for paying title insurance.

 

You can calculate your title insurance costs based on property value and using promulgated rates set by the state government, but you can also use a Florida title insurance calculator to get the most precise closing costs estimates.

The latest promulgated rates are presented below:

 

  •    -$5.75 for every $1,000 of liability, not more than $100,000
  •    -Extra $5.00 for every $1,000 of liability between $100,000-$1,000,000
  •    -Extra $2.50 for every $1,000 of liability between $1,000,000-$5,000,000
  •    -Extra $2.25 for every $1,000 of liability between $5,000,000-$10,000,000
  •    -Extra $2.00 for every $1,000 of liability that exceeds $10,000,000

Additional charges may add up to your Florida title insurance rates during the closing process. These may include:

 

  •    -Title search costs 
  •    -Reissue rate
  •    -Simultaneous issue costs

Who pays for title insurance in Florida?

In case you are a first-time homebuyer, you may have heard different opinions about how much title insurance is in Florida and who has to pay for it. And the truth is – it depends. In some cases, you might have to pay for your title insurance policy as well as your lender’s policy, but it can also be the seller’s responsibility. All these options often create confusion, but the reason you have been given different answers to the same question is that there is no one unique answer. 

It may be customary for either the seller or the buyer to pay for title insurance, depending on the county where the property is located. That, however, doesn’t mean that there is a law that says a specific party must pay for title insurance in that particular county; you can always negotiate. For instance, you can ask the seller whether they are willing to pay for title insurance at the negotiation stage. However, some sellers decide to pay for title insurance without being asked. In Florida, the seller often pays for title insurance. However, the buyer typically pays in some counties, including Collier County, Sarasota County, Broward County South Florida, and Miami-Dade County. With all this in mind, it would be highly beneficial to consult an experienced Florida title insurance attorney as well as an escrow company to ensure your rights and interests are fully protected.

 

Get in touch with Florida’s best title insurance experts

Law Mandel can help you get the best out of your real estate transactions if you have any uncertainties about title insurance. Our title and real estate professionals will strive to ensure your closing is smooth, enjoyable, and stress-free. 

Our title insurance company will help you buy your dream property and ensure you legally own it for as long as you want to. We’ll make sure your real estate process doesn’t turn into a nightmare.

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How much is title insurance in Florida?