How Long Does It Take to Get Title Insurance in Florida?

October 20, 2024

While title insurance is not mandatory in most Florida counties, it's become a standard part of the closing process, and for good reason. The state boasts one of the most competitive real estate markets in the country, so it doesn't hurt to take all the steps to protect your investment. Now, it can be hard to fit the process of title insurance on top of all the other escrow requirements, but you can plan for it with a clear timeline and the support of a reliable title and escrow service.

Why Should I Get Title Insurance?

Let's start by explaining what makes title insurance so important. Title insurance is meant to protect the owner's rights after buying a real estate property. This protection is focused on problems related to the title or deed, the main asset to identify a person as the property's legal owner.

While homeowner's insurance is meant to address any physical damage to the property itself, title insurance protects against issues that could potentially remain unsolved after the title search, like liens, debt, hidden claims, and other encumbrances. The right insurance policy should have coverage for:

• Missing heirs and other hidden claims over the property


• Mistakes or inaccuracies in the title


• Forged documents, identity theft, and other forms of scam on the property title


• Mortgage fraud from previous owners


• Problems arising when the property encroaches on another owner's territory


• Pending debt from unpaid taxes, contractor fees, etc.

Premium insurance plans allow life-long protection, or more specifically, their coverage is valid for as long as you and/or your heirs own the property.

Title Insurance as Part of the Escrow Process

The topic of title insurance must be brought up for discussion during the initial negotiations. Once buyers and sellers reach an agreement, title insurance will be one of the items in the escrow contract. Usually, the property keeps its existing insurance policy for the duration of the transaction, and its coverage expires after the closing. The escrow agreement should outline a deadline for the new insurance to be issued, specify who's in charge of paying for it, and other important factors to prevent conflict later on.

In most parts of Florida, the sellers are trusted with the responsibility of paying for the new insurance policy, but this standard doesn't hold in all counties, with Miami-Dade, Broward, and Sarasota being notable exceptions.

Now, regarding the timeframe to get title insurance, title and escrow companies play a huge part in streamlining the process. They coordinate things with many other parties, like real estate lawyers, mortgage lenders, surveyors, etc. Among its services, the company takes care of reaching out to insurance companies and outlining the best insurance plan.

Taking a step back, real estate transactions are completed in around 30 days, and they don't usually take longer than two months. This includes all the steps from the moment the purchase offer is accepted, like home appraisals and the title search that usually precedes the issuing of title insurance. The title search is usually complete before two weeks, unless there are major issues that need closer attention.

It takes more or less the same amount of time to get title insurance in Florida, but there are still factors that could delay the process:

• If you don't have a clear title, the insurance company won't issue the policy until the issue is resolved. These problems are usually found during the title search, but it's natural to expect the insurance company to conduct their own evaluation of records.


• In the event of finding evidence of forgery or encumbrances in the title, there's a 'curing period' in which all the problems are resolved. Said period can span from a couple of days to several weeks depending on the nature of the problem, whether you need to make corrections on the documents or show proof that a lien has been paid.
  
  It's important to clarify that the insurance policy will still cover these same issues after it's been granted.

All in all, the process might take from 4 to 8 weeks in these cases. You might be able to go on with the closing in the meantime, but the money corresponding to the insurance still needs to be transferred along with the other closing costs.

Protect Your Peace of Mind and Get Your Title Insurance with Key Title & Escrow

No one should underestimate the importance of title insurance, even if they're lucky enough to never need its coverage. That's why we strive to provide the best insurance option so you start this new chapter on a high note.

Our specialists are ready to give you the most competitive estimates so you can make an informed decision while we help you navigate the most tedious parts of the escrow process.

Let Key Title & Escrow support you at each step of your escrow transaction so you can reach the closing date without a hitch. Our team will help you complete all the requirements on the contract, including the support you need to secure the right insurance policy for your new home. Don't hesitate to contact us if you have questions by calling (305) 235-4571 or toll-free at (800) 547-0006. You can also contact us via the contact form on this page, and we'll be happy to assist you. Do you want to get title insurance in Florida? Key Title & Escrow will help you make it happen!