Understanding Title Insurance When Buying a Florida Home
Understanding Title Insurance When Buying a Florida Home
You’re excited to buy your Florida dream home—but do you really know what title insurance does?
Let’s break it down.
What Is Title Insurance?
Title insurance protects you and your lender from financial loss due to defects in the home’s title.
It’s a one-time fee paid at closing that covers issues like:
- Liens from unpaid taxes or contractors
- Unknown heirs or ownership disputes
- Errors in public records
- Forgery or fraud in prior documents
If any of these surface after closing, title insurance protects your investment.
Two Types of Title Insurance
- Lender’s Policy
- Required by your mortgage lender
- Protects their interest in the home
- Owner’s Policy
- Optional (but highly recommended)
- Protects your equity and ownership rights
You only pay for it once, but the protection lasts as long as you own the home.
Who Pays for It in Florida?
In Florida, it varies by county:
- Sarasota/Manatee County: Buyer usually pays
- Miami-Dade or Broward: Seller often pays
Always check the contract to confirm.
How Much Does It Cost?
Title insurance rates are set by Florida law:
- About $5.75 per $1,000 of purchase price up to $100,000
- $5 per $1,000 thereafter
On a $400,000 home, expect around $2,125 for the owner’s policy.
What Does the Title Company Do?
- Performs a title search for liens, judgments, or claims
- Clears any problems before closing
- Issues the policy and manages closing paperwork
Your real estate agent usually helps you select a title company.
Why It Matters
If a title issue surfaces after you buy:
- You could be sued
- Your lender may demand repayment
- You could lose the property
Without insurance, you’re financially exposed.
Final Thought
Title insurance isn’t flashy, but it’s critical.
📞 Call Michael Renick at 941.400.8735 to make sure your Florida home purchase is protected from day one.
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