What Is Title Insurance?

Short answer

Title insurance is a one-time policy that protects against losses from defects in the property's ownership history: unknown liens, forged deeds, missing heirs, recording errors. There are two policies: the owner's policy protects you for as long as you own the home, and the lender's policy protects the mortgage lender and is required on every loan. Florida sets the premium by regulation: $5.75 per $1,000 of coverage up to $100,000 and $5.00 per $1,000 from $100,000 to $1,000,000 (Fla. Admin. Code 69O-186.003, as of October 2026).

Definition

Title insurance indemnifies the insured against covered title defects that existed before the policy date, and pays legal costs to defend the title. Unlike other insurance, it is paid once at closing with no renewal premium.

Worked example

Purchase price $550,000 in Miami Springs, loan $440,000. Owner's policy premium at Florida promulgated rates: first $100,000 x $5.75 per $1,000 = $575; next $450,000 x $5.00 per $1,000 = $2,250; total $2,825. The lender's policy, issued at the same time for an amount not exceeding the owner's policy, carries the simultaneous-issue minimum of $25. Add endorsements the lender requires (Florida Form 9 and others), title search and closing fees, which vary by agent. Had the buyer paid cash with no loan, the lender's policy and its endorsements would not be needed.

Owner's policy vs lender's policy

• Owner's policy: optional by law but standard in Florida purchases; covers your equity for as long as you or your heirs own the property.
• Lender's policy: required by every mortgage lender; covers the loan balance and declines as you pay down.
• Endorsements: add-ons the lender requires, such as the Florida Form 9 (restrictions, encroachments) and condo or PUD endorsements, each with a set fee.
• Both policies are listed in Section C or H of your Closing Disclosure.

Florida promulgated rates

Florida regulates the premium (Fla. Admin. Code 69O-186.003, as of October 2026): $5.75 per $1,000 up to $100,000; $5.00 per $1,000 above $100,000 to $1,000,000; lower rates on higher tiers. Simultaneous-issue lender's policy: $25 minimum when not exceeding the owner's amount. Reissue rate for a prior policy: $3.30 per $1,000 up to $100,000 and $3.00 per $1,000 above, $100 minimum. Title agents compete on search, closing and endorsement fees, not on the premium itself.

In South Florida

In Miami-Dade and Broward the seller customarily pays for the owner's title policy and chooses the title agent, while the buyer pays for the lender's policy and its endorsements; this is the opposite of some other Florida counties, and the contract can change it. On a refinance, you buy only a new lender's policy, and Florida's reissue rate ($3.30 per $1,000 up to $100,000, then $3.00) may apply if you provide your prior owner's policy, so keep it. Title issues common locally include open permits, unpaid code enforcement liens and estate transfers.