How Is Title Insurance Calculated in Florida

May 14, 2024

You can't underestimate the peace of mind of having an insurance policy to protect your investment. Most buyers start the proceedings of getting title insurance early on in the process, and there's a reason for that.

What Is Title Insurance?

While homeowners insurance saves you a lot of grief when your property sustains material damage, the protection of title insurance is less tangible but just as important in the long term.

Title insurance protects the ownership rights you gain after the settlement. The title proves that you're the property owner, so it's granted to you once all the closing documents have been signed.

Unfortunately, many factors could jeopardize the clauses in the title and/or its validity, and title searches are not a foolproof solution; the right title insurance policy is there to ensure that you're not held accountable for issues that have been carried out through different title transfers.

Among other things, title insurance protects you in cases of forgery, unpaid taxes and liens, unreleased mortgages, conflicting ownership claims, or inaccuracies in legal documentation. Sometimes, these issues may remain under wraps for years, so title insurance is the surest way to avoid legal consequences and financial losses during the fallout.

The Cost of Title Insurance

The value of the property will determine the insurance policy, but this isn't the only factor in the calculation.

When title insurance is issued in Florida, insurance companies need to meet a rate set by the state corresponding to the cost of liability for their policy. This is known as a promulgated rate, and it's also the rule for other states in the U.S. To get an estimate of the insurance cost, you need the company's rate per thousand and multiply it by the purchase price of the property.

Title insurance is part of the closing costs of a real estate transaction, so the rates will be outlined in the closing statement. Your title company can help you identify where each amount comes from, but to give an estimation, title insurance usually costs between $500 and $3,500.

Who Pays for Title Insurance?

In many parts of Florida, the person tasked with paying for title insurance premium also gets to choose the closing agent, but you can't take things for granted if you only have experience in a particular county. Likewise, the county also determines whether these responsibilities fall on the seller or the buyer.

Get the Best Assistance To Find Affordable Insurance Rates

With the best support, title insurance follows a simple process to provide life-long protection. Insurance premium involves a one-time payment during the closing and its coverage usually extends to all the time you remain as the legal owner. In most cases, this also includes the people who inherit the property upon the owner's death.

There are also cases where the title policy is requested by the lender, specifically a lender's insurance policy. While similar to owner's insurance when it comes to its protection against claims or title defects, this coverage protects only the lender so they don't lose the loan amount if the transaction falls through.

The owner's insurance is optional in most cases, but most buyers take this precaution and it does wonders for their peace of mind.

If you don't know how to identify the best insurance policy, or if you're still on the fence about the benefits of getting title insurance, you can trust Key Title & Escrow to provide all the information you need. We have taken countless real estate transactions to a successful closing, so we know how to get exactly what you need.

The specialists at Key Title & Escrow will gladly help you secure the best deal for your title insurance, whether you're looking for a lender's policy, a homeowner's policy, or both. You can count on our full transparency, so you won't be thrown off by surprise fees or unclear clauses when you're already deep into the process.

You don't have to spend all your energy just to secure title insurance when you need it. Key Title & Escrow is here to assist you with top-grade service and introduce the best insurance policies in Florida. You can call (305) 235-4571 or toll-free at (800) 547-0006 to learn more about our services. Also, be sure to contact us via the contact form on this page, to get more information from one of our title insurance specialists. You deserve peace of mind at the end of a real estate transaction, and Key Title & Escrow works hand to make it happen!