Of all the line items on a Florida closing disclosure, title insurance is one of the least understood — and one of the only closing costs that’s actually set by the state rather than negotiated in the open market. Here’s what it covers, what it costs, and who typically pays for it here in South Florida.
What Title Insurance Actually Covers
Title insurance protects against problems with a property’s ownership history that don’t show up during a normal walkthrough: undisclosed liens, errors in public records, forged signatures on a previous deed, unknown heirs with a claim to the property, boundary disputes, and unpaid HOA or condo assessments tied to the title. Unlike homeowners insurance, it’s a one-time premium paid at closing, not a recurring bill.
Owner’s Policy vs. Lender’s Policy
There are two separate policies, and they protect two different people. A lender’s policy protects the mortgage company’s interest in the property — nearly every Florida lender requires one, and the buyer always pays for it, regardless of county custom. An owner’s policy protects the buyer’s own equity in the home. It’s optional, but strongly recommended, since it’s the only policy that protects you personally if a title issue surfaces after closing. Cash buyers skip the lender’s policy entirely, but should still consider an owner’s policy to protect their investment.
How Florida Sets the Rate
Florida is a “promulgated rate” state, meaning the Office of Insurance Regulation sets title insurance premiums — so the price for an owner’s policy is the same no matter which title company or underwriter you use. The formula is tiered: $5.75 per $1,000 of the first $100,000 of the purchase price, then $5.00 per $1,000 above that. On a $400,000 home, that works out to roughly $2,075 for the owner’s policy. If you order the lender’s policy at the same time (a “simultaneous issue”), it typically drops to a flat $25, since the title search has already been done.
Who Pays? It Depends on Your County
Florida has no statewide law dictating who pays for the owner’s policy — it comes down to local custom, and the purchase contract can override that custom entirely. In Broward and Miami-Dade counties, the buyer customarily pays for the owner’s policy. In several other Florida counties, including Palm Beach, Orange, Duval, and Hillsborough, the seller customarily picks it up. Since it’s a matter of custom rather than statute, it’s always worth confirming in your specific contract — and in a buyer’s market, it’s not unusual for a seller to offer to cover it as a concession.
This is general information, not legal, tax, or insurance advice — title insurance rules, endorsements, and local practice can vary, so talk with your title company or a real estate attorney about the specifics of your transaction.
Have a purchase or sale coming up in Broward or Miami-Dade? We’re happy to walk you through what to expect at the closing table and connect you with title partners we trust.