When buying a home, most people focus on the property itself—the location, condition, and price. But one of the most important steps in protecting your investment happens behind the scenes: title insurance.
Unlike auto or health insurance, title insurance is a one-time cost paid at closing that protects you against potential issues with the ownership of your property. Let’s break down what it is, what it covers, and how rates are set in Florida.
What Title Insurance Covers
Title insurance protects both buyers and lenders against financial loss due to defects in the title. These can include:
- Errors in public records – Clerical mistakes or filing errors that affect ownership.
- Unknown liens – Unpaid debts (contractors, taxes, HOA fees, etc.) tied to the property.
- Missing heirs or ownership disputes – If someone later claims an ownership interest.
- Fraud or forgery – Signatures on deeds or other documents that were falsified.
- Survey or boundary disputes – Issues over property lines.
In short, it ensures that when you buy your home, you truly own it—free and clear of past claims.
Florida’s Promulgated Rate
In Florida, title insurance is regulated by the state. That means the premium is a promulgated rate, set by the Florida Department of Financial Services.
This is important because it keeps pricing consistent—whether you buy title insurance through a large national company or a local title agency like ours, the cost for the premium itself is the same.
How Title Insurance Is Calculated
The title insurance premium in Florida is based on the purchase price of the property. The state has a tiered formula that looks like this:
- $5.75 per $1,000 of coverage up to $100,000
- $5.00 per $1,000 from $100,000 to $1 million
- $2.50 per $1,000 from $1 million to $5 million
- $2.25 per $1,000 from $5 million to $10 million
- $2.00 per $1,000 over $10 million
For example:
- On a $250,000 home, the premium would be $1,325.
- On a $500,000 home, the premium would be $2,575.
This premium is a one-time cost, paid at closing, and covers you for as long as you own the property.
The Re-Issue Rate
Florida also has something called the re-issue rate, which can provide significant savings.
If the seller of the property purchased an owner’s title policy within the last 3 years, you may be eligible for a discounted premium when issuing a new policy. This is because much of the title work has already been done.
The re-issue rate is typically 30%–40% less than the standard premium, depending on the situation. It’s always worth asking your title company if this discount applies to your transaction.
Why It Matters
Buying a home is one of the biggest investments of your life. Title insurance gives you peace of mind that your ownership is secure—no matter what issues from the past may come to light in the future.