What Does Title Insurance Protect Against in Florida?
Title insurance protects buyers and lenders against defects in the title that were not discoverable from the public record. Here is what it covers, what it does not cover, and why it matters for Florida buyers.
What Does Title Insurance Protect Against in Florida?
Title insurance protects buyers and lenders against defects in the title to a property — problems with ownership that were not discoverable from the public record at the time of purchase.
What Title Insurance Covers
Title insurance protects against losses arising from:
Forged or fraudulent documents: A prior deed that was forged or obtained by fraud may be legally invalid, even if it was recorded. Title insurance covers losses from such defects.
Errors in the public record: Mistakes in recording, indexing, or transcribing documents can create title defects. Title insurance covers losses from these errors.
Undisclosed heirs: A prior owner may have died with heirs who were not identified in the probate proceeding. These heirs may have a claim to the property. Title insurance covers losses from such claims.
Liens not discovered in the title search: Some liens may not appear in the standard title search — IRS liens filed in a different county, for example. Title insurance covers losses from undiscovered liens.
Survey errors: Errors in a prior survey that affect the property's boundaries.
Impersonation: Someone impersonating the true owner and conveying title fraudulently.
Owner's Policy vs. Lender's Policy
There are two types of title insurance policies:
Lender's policy (required): Protects the lender's interest in the property up to the loan amount. Required by virtually all mortgage lenders. Does NOT protect the buyer.
Owner's policy (optional but strongly recommended): Protects the buyer's ownership interest in the property. Covers the full purchase price. Provides protection for as long as you own the property.
In Florida, the seller typically pays for the owner's title insurance policy (this is negotiable). The buyer pays for the lender's policy.
What Title Insurance Does NOT Cover
Title insurance does not cover:
- Defects that are listed as exceptions in the title commitment (Schedule B-II)
- Problems that arise after the policy is issued
- Zoning violations or building code issues
- Environmental contamination
- Matters that would be revealed by a current survey (if no survey is obtained)
FAQ
Is title insurance required in Florida?
The lender's policy is required by virtually all mortgage lenders. The owner's policy is optional but strongly recommended.
How much does title insurance cost in Florida?
Title insurance premiums in Florida are regulated by the state. The premium is based on the purchase price. For a $500,000 purchase, the combined owner's and lender's premium is typically $2,500–$3,500.
Is title insurance a one-time cost?
Yes. Unlike homeowners insurance, title insurance is a one-time premium paid at closing. It provides coverage for as long as you own the property.
Questions about title insurance for your Emerald Coast purchase? I can walk you through the coverage and costs.
— Kinsey Haddock P.A., Broker Associate | Coldwell Banker Realty — Panhandle | License #BK3253849
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Written by
Kinsey Haddock P.A.Kinsey Haddock P.A. is a Broker Associate and REALTOR® with Coldwell Banker Realty, specializing in coastal real estate across the entire Florida Panhandle — from St. George Island and the Forgotten Coast to Panama City Beach, Scenic Highway 30A, and Destin.