Title insurance is often misunderstood by home buyers, and it’s easy to see why. With so many types of insurance, it’s hard to keep them all straight. Below, we’ll break down the most common types of title insurance policies and explain when you might need them for your Florida home.  

Owner’s Title Insurance 

An owner’s title insurance policy is an elective form of protection that safeguards you, the owner, against financial loss in the case of title defects, disputes or legal issues related to the property’s ownership. 

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. Title insurance rates are established by the Florida Administrative Code and are based on the sale price of the property.  

Lender’s Title Insurance 

Whereas an owner’s policy protects you, most lenders also require a separate lender’s policy to protect their financial interest in the property. If you finance your purchase with a mortgage, plan on paying for a lender’s title insurance policy. The coverage for a lender’s policy typically lasts until the loan has been repaid or refinanced.   

It’s important to note that title insurance policies vary based on the title insurance company you are working with and local regulations. Be sure to understand what is (and is not) included in your policy. 

While owner’s title insurance is optional in Florida, it is highly, highly recommended to protect your investment. Title insurance provides a layer of protection and peace of mind for property owners and lenders in the event of unforeseen title issues. To learn more about title insurance in South Florida and all the ways it reduces your risk as a homebuyer, get in touch with our team at the Law Offices of Alex D. Sirulnik, P.A. and ADS Titles Services, Inc.