Even though there are no laws requiring owner’s title insurance in Florida, ask any legal professional and they will all advise you to purchase it – and if they advise against it, you may want to seek legal counsel elsewhere.
In Florida, title insurance rates are established by Rule 69O-186.003 of the Florida Administrative Code. The rule specifies rates for all types of title insurance scenarios, including original owner and leaseholder title insurance coverage, reissue rates (if a prior owner’s policy exists), substitution loan rates, and other situations.
Unlike other types of insurance, title insurance comes with just a one-time premium payment that is payable at the time of closing. It’s effective for as long as you and your heirs own the property.
Title Insurance Rates in Florida
The cost of title insurance in Florida is based on the sale price of the property. Fla Stat. §627.7825 specifies how title rates are calculated. Here’s how to do the math:
- Add $5.75 per $1,000 for the first $100,000 of liability written;
- Then, add $5.00 per $1,000 for properties over $100,000 and up to $1 million;
- Add $2.50 per $1,000 for properties over $1 million up to $5 million;
- Add $2.25 per $1,000 for properties over $5 million up to $10 million;
- And add $2.00 per $1,000 for properties over $10 million coverage.
Depending on the county in which the sale is conducted and how your sale was negotiated, either the buyer or seller may be responsible for paying for the title insurance premium.
Consider working with an experienced real estate attorney who can advise you on the best way to negotiate the purchase and sale contract.
If you have more 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. at ADS Title Services.