Title insurance is a one-time policy, paid at closing, that covers losses from problems in a home's ownership history: an unpaid lien from a prior owner, a forged signature somewhere in the chain of title, an heir nobody knew about, or a recording mistake at the county. Before closing, the title agent searches the public records and clears what turns up, and the policy pays for covered problems the search missed. Florida has two kinds of policy, and the state sets what both cost.
The owner's policy and the lender's policy
The lender's policy protects the mortgage lender up to the loan amount. Lenders require it on FHA, VA, USDA and Conventional loans, and the buyer pays for it.
The owner's policy protects you, up to the purchase price, for as long as you own the home. It's what keeps your down payment and equity whole if an old claim surfaces years later. Who pays for the owner's policy is written into the purchase contract, and local custom on that point differs from county to county around Florida.
On every program, the buyer's title charges count as closing costs, so a seller credit within the program's limit can pay them.
Florida sets the premium
Florida title premiums are promulgated, meaning a state rule sets the rate and every title insurer charges the same premium for the same coverage. An owner's policy costs:
| Amount of coverage | Rate |
|---|---|
| First $100,000 | $5.75 per $1,000 |
| $100,000 to $1 million | $5.00 per $1,000 |
When the lender's policy is issued together with the owner's policy and doesn't exceed it, the lender's policy premium is a flat $25, called the simultaneous issue rate.
Premiums at three Florida prices
| Price | First $100,000 | Amount above $100,000 | Owner's policy |
|---|---|---|---|
| $300,000 | $575 | 200 × $5.00 = $1,000 | $1,575 |
| $350,000 | $575 | 250 × $5.00 = $1,250 | $1,825 |
| $425,000 | $575 | 325 × $5.00 = $1,625 | $2,200 |
On the $350,000 purchase, the owner's policy at $1,825 plus the $25 simultaneous lender's policy comes to $1,850 in premiums. The title agent's search, settlement and endorsement charges are added on top and appear as separate lines on your Loan Estimate.
The cash to close calculator builds Florida's title premium into its closing cost estimate. Call AAA Capital Funding at 888-601-8344 and we'll price the title charges on the exact home you're offering on.