Who Pays Title Insurance in Florida?

If you are interested in purchasing a home for the first time in Florida, you may have many questions about the home buying process. You probably have questions about Florida title insurance, the cost of title insurance in Florida and who typically pays closing costs in Florida?

Buying a home in Florida can be confusing, especially when it comes to title insurance. This blog article will cover everything you need to know about what is title insurance and how Florida title insurance is unique.

What is Title Insurance? 

If you are not familiar, title insurance is an essential element when purchasing a new home. Title insurance is intended to protect both the lender and the buyer against any financial loss if something comes up that would prevent the property owner from selling the home. For example, you could purchase a home but then find out that the person who sold it to you wasn’t legally able to sell the property. There are many different scenarios in which title insurance could be necessary and can help protect the buyer, lender, and sometimes even the seller of the home from losing a large amount of money. 

Who Pays the Cost of Title Insurance in Florida? 

Now that you understand what is title insurance and why it is crucial, you may be wondering if owner’s title insurance is optional in Florida and who typically pays for Florida title insurance? You may have heard that you have to pay for Florida title insurance and your lender’s policy, but that it is the seller’s responsibility. Technically, both of these answers are correct.

Depending on which county you intend to purchase your home, it may be expected for either the seller or the buyer to pay for title insurance. This doesn’t mean that a law requires a particular party to pay for it, and you can always negotiate. At the start of the home buying process, you can ask if the seller is willing to pay for the title insurance. The party that pays for the title insurance in Florida depends on which county the property is located in and the purchase price of the property, and the seller. For insurance, in Florida, the seller typically pays for title insurance. However, the buyer would usually pay this in some counties like Miami-Dade, Broward and Sarasota County. This is not a strict rule and can be negotiated.

If you are going to be paying for title insurance, you might be concerned about the actual cost of the insurance policy. In Florida, the price of your title insurance will be based on the purchase price of the home you are hoping to buy. For example, homes priced up to $100,000 will cost $5.75 for every thousand dollars. For homes over $100,000, title insurance policies cost $5.00 for every thousand dollars. Please note that unlike other types of insurance in Florida, you do not have to pay for title insurance annually. Title insurance is a one-off cost that will protect you as long as you own the home.

If you’re interested in buying a home in Florida and want expert advice and guidance regarding title insurance, look no further than Dunham Insurance. As an independent insurance agency, we are focused on delivering to our clients insurance policies that are tailored to their unique insurance needs at a competitive price. Contact us today to discuss your insurance needs or get a free quote!