Purchasing a home is one of the most significant investments you’ll likely ever make and ensuring that this investment is protected for the long haul is crucial to your family’s financial health.
A surefire way to safeguard your property investment in Florida is by obtaining title insurance, but you may be thinking, “We’ve already spent so much on the home and all the other related expenses that come with purchasing real estate. Do we really need to spend even more on title insurance?” While we hear you loud and clear, we still strongly say “yes” to title insurance and here’s why:
What is Title Insurance?
Title insurance is a policy that protects homeowners and lenders from financial loss due to defects in the title to a property. Owner’s title insurance and lender’s title insurance are two types of insurance policies you may need for your Florida home.
Unlike other types of insurance that cover future events, title insurance covers issues that have occurred in the past but may affect the property’s ownership in the future. Title insurance comes with just a one-time premium, and it remains in effect for as long as you or your heirs own the property. The cost of title insurance in Florida is based on the sale price of the property. Fla Stat. §627.7825 specifies how title rates in the state are calculated.
How Title Insurance Protects Homeowner’s Risk
Title insurance is not legally required when buying a home with cash in Florida, but it is highly recommended. In terms of risk protection, title insurance offers the following advantages (and many more):
- Financial protection – For a relatively minimal amount paid as a one-time premium, title insurance offers financial protection for legal fees, court costs, and potential financial losses related to these title defects for as long as you or your heirs own the property.
- Peace of mind – Buying a home is a significant decision. Knowing you have title insurance can provide the peace of mind you need to confidently proceed with the purchase. Not only does title insurance provide financial protection, but it also reduces your risk of discovering unknown issues with your property’s title, even those that may not surface until years down the road.
- A simpler closing process – Lastly, purchasing title insurance can help speed up closing and reduce the likelihood of encountering any of these common issues that often surface during Florida real estate closings.
Protecting your home with title insurance is a smart way to safeguard your investment, especially for the relatively minimal cost it takes to provide coverage for the duration of your ownership. If you have questions about title insurance or why you should consider purchasing it, get in touch with our team at the Law Offices of Alex D. Sirulnik, P.A. and ADS Title Services, Inc.
