Title Insurance FAQs

Title insurance is a type of insurance that protects property owners and lenders from financial loss due to defects in a property’s title.

In Florida, title insurance is crucial to safeguard against potential issues such as undisclosed liens, errors in public records, or other title defects that can arise during property transactions.

There are two types: Owner’s Title Insurance (protecting the property owner) and Lender’s Title Insurance (protecting the mortgage lender).

The party responsible for paying the title insurance premiums can vary. It is often negotiated during the real estate transaction, with buyers and sellers splitting the costs in different ways.

Title search is performed by examining public records to trace the history of ownership and identify any potential issues. This is a crucial step in the title insurance process.

Title insurance typically covers issues such as fraud, forgery, undisclosed heirs, errors in public records, and other title defects.

Unlike other types of insurance that protect against future events, title insurance focuses on past events that may affect the ownership of the property.

Owner’s title insurance provides coverage for as long as you own the property, while lender’s title insurance is usually effective until the mortgage is paid off.

In Florida, the buyer or borrower generally has the right to choose the title insurance company.

If a title defect is found, the title insurance policy can provide coverage for legal expenses to defend against a challenge and financial compensation for covered losses.

While it’s not legally required, it is strongly recommended to protect the buyer and lender from potential title issues.

The cost of title insurance in Florida can vary, but it is often based on the property’s purchase price and the coverage amount.