What is Title Insurance in Florida?

Title insurance in Florida protects buyers and lenders from financial liabilities arising due to faulty title or hidden liens associated with your Florida property. Here's a quick video on how title insurance can protect you and your lender in the case of a title defect. There are two types of Florida title insurance policies: Lender’s Title Insurance Policy and Owner’s Title Insurance Policy.

Most lenders in Florida require borrowers to purchase a Florida Lender’s Title Insurance Policy, simply called the lender’s policy. This way Florida lenders are protected against issues arising out of defects on the title of a Florida property. On the other hand, the Florida Owner's Title Insurance Policy protects the buyer or borrower in case of any title defects on a Florida property.

Title insurance policy premiums in Florida show up as line items within a closing cost worksheet for a buyer and seller such as a Closing Disclosure, Loan Estimate, HUD-1, or an ALTA Settlement Statement. If you're looking to get a preview of what these costs look like, use this free Florida title insurance calculator.

How much does Title Insurance Cost in Florida?

Florida title insurance costs are regulated and also set by the Florida Department of Financial Services in conjunction with a consortium of title insurance underwriters that operate in the state. The state sets five defined premium tiers based on the price of the property or the loan in increments of $1,000 that you can see on this page below.

In Florida, a title insurance policy computed using the 2020 rates on a $100,000 property or loan would cost you around $575. Whereas, the title insurance policy premium on a $200,000 property or loan would cost your around $1,075. As you can see, as your Florida property or loan value increases, the cost for title insurance goes down as a percentage of your Florida property or loan price.

Note, that title insurance premiums do not include additional title policy endorsements such as the Florida Form 9, that could further increase the total title insurance policy premium. You can contact a reliable title company in Florida to get accurate quotes, but remember to verify their license on the Florida Department of Financial Services' website before you engage them. 

What is the Promulgated Rate for Title Insurance in Florida?

Title insurance in Florida is promulgated by the Florida Department of Financial Services in conjunction with title underwriters in the state. The 2021 promulgated rates for title insurance in Florida are calculated as follows:

  • $5.75 per thousand dollars up to $100,000 of liability
  • An additional $5.00 per thousand dollars between $100,000 to $1,000,000 of liability
  • An additional $2.50 per thousand dollars between $1,000,000 to $5,000,000 of liability
  • An additional $2.25 per thousand dollars between $5,000,000 to $10,000,000 of liability
  • An additional $2.00 per thousand dollars over $10,000,000 of liability

In addition, when a Lender's Policy is issued simultaneously with an Owner's Policy, the simultaneous promulgated rate for the Lender's Policy is $25 up to the liability level of the Owner's Policy.

We put together this Florida Title Insurance Calculator to help you compute the promulgated rates for title insurance in Florida instantly for both the Owner's and Lender's policies.

How is Title Insurance Calculated in Florida?

As mentioned, there are five different tiers in the Florida Title Insurance Rate Table that are used to calculate title insurance costs in Florida. These are:

Liability Amount Cost per $1,000
Up to $100,000 $5.75 per $1,000
Over $100,000 to $1 million $5.00 per $1,000
Over $1 million to $5 million $2.50 per $1,000
Over $5 million to $10 million $2.25 per $1,000
Over $10 million $2.00 per $1,000

 

According to the 2020 Florida promulgated title insurance rates, here are a couple examples of what Florida title insurance costs could be for different transaction scenarios:

  • For a purchase of a $250,000 property in Florida with 20% down payment ($50,000), the cost of a Florida title insurance owner's policy and lender's policy are $1,325 and $25 respectively. 
  • For a purchase of a $200,000 property in Florida bought with full cash, the cost of a Florida title insurance owner's policy is $1,325. 
  • For a purchase of a $500,000 property in Florida with 20% down payment ($100,000), the cost of a Florida title insurance owner's policy and lender's policy are $2,575 and $25 respectively.
  • For a purchase of a $200,000 property in Florida bought with full cash, the cost of a Florida title insurance owner's policy is $2,575. 
  • For a purchase of a $1,000,000 property in Florida with 20% down payment ($200,000), the cost of Florida title insurance owner's policy and lender's policy are $5,075 and $25 respectively. 
  • For a purchase of a $200,000 property in Florida bought with full cash, the cost of a Florida title insurance owner's policy is $5,075. 

Note that most Florida title insurance policies also include additional title insurance endorsements as required by your lender or the nature of your property transaction which may end up costing you little more than what’s projected here.

Who Pays for Title Insurance in Florida?

Generally speaking, in Florida, as a courtesy to the buyer, the seller of the property pays for the Florida Owner's Title Insurance Policy and the buyer pays for a Florida Lender's Title Insurance Policy if required by their lender. However, this can be duly negotiated by the buyer and seller during the sale of a property.

In addition, there are a few counties in Florida where this is not always the case:

Who Pays for Owner's Title Insurance in Florida?

In Florida counties of Sarasota, Collier, Miami-Dade and Broward, the buyer generally pays for their own Florida Owner's Title Insurance Policy. In all other counties, it is customary for the seller to pay for the Florida Owner's Title Insurance Policy everywhere else in Florida.

Is the Owner's Title Insurance Policy required in Florida?

A lot of buyers are often unaware that the purchase a Florida Owner's Title Insurance Policy is completely optional, however, there are significant discounts associated with the purchase of both a Florida Lender's Title Insurance and Florida Owner's Title Insurance policies simultaneously. Generally speaking, if you purchase both an owner's and lender's title insurance policy in Florida, the policy with the smaller liability can be purchased for a nominal fee of $25, also called the Florida simultaneous policy issue discount. Our Florida title insurance calculator will automatically compute the simultaneous policy discounts as well.

Who Pays for Lender's Title Insurance in Florida?

Since the choice of financing the transaction is up to the buyer, the buyer typically pays for a Florida lender's title insurance policy. However, in many cases, depending on how competitive the market is, a buyer can negotiate 

 

Looking for more Florida title insurance resources? Check out our other resources on ALTA Endorsements, Florida Form 9 and Lady Bird Deed to help you prepare better for closing.