Title insurance in Florida — owner's vs lender's policy, who pays

What title insurance covers

The standard policy covers:

• Forgery / fraud in prior deeds.
• Recording errors at the county registry.
• Hidden heirs: an heir who never signed can claim the property.
• Undisclosed spouse with marital rights.
• Tax or municipal liens not revealed in title search.
• Unrecorded easements.
• Bad legal description.
• Forged documents.

In a claim, insurer pays legal defense + lost value up to policy limit.

Owner's vs lender's policy

Owner's title policy

Protects buyer. Initial coverage = purchase price. Stays valid as long as you own (no renewal). If you sell, the policy ends.

Lender's title policy

Protects the lender. Initial coverage = loan amount, decreases as it amortizes. Always required if you have a mortgage.

For a Canadian: if you pay cash, you're not required to have an owner's policy, but it's highly recommended. Title insurance is insurance against the unknown.

Cost and who pays

Florida has state-regulated title insurance rates (Florida OIR), so all title agents charge the same. Competition is on service, not price.

Typical fees on $500,000 USD:

• Owner's policy: ≈ $2,575 USD (≈ 0.52 %).
• Lender's policy: ≈ $25 supplement if ordered with owner's (simultaneous issue).

Who pays by regional tradition:

• Miami-Dade, Broward, Palm Beach, Sarasota: buyer pays owner's.
• Rest of FL: seller pays owner's.
• Lender's policy: buyer always pays.

Negotiable in the contract, but respecting regional convention smooths the transaction.

The title process

1. Title search ordered from title company (day 1–5 of contract).
2. Title commitment issued (day 5–15): document listing what will be covered and all exceptions.
3. Curing exceptions: title agent and lawyers resolve defects found (liens to pay, heirs to contact, etc.).
4. Closing: title insurance issued simultaneously.
5. Deed recording at county registry within days after.
6. Final policy mailed to buyer within weeks after closing.

Standard exclusions

Does not cover:

• Defects visible by simple physical inspection.
• Encroachments known to buyer.
• Zoning laws, building codes, environment.
• Eminent domain (government expropriation).
• Defects created by buyer after closing.
• Minors (recent inheritance claims).

Optional endorsements

Endorsements you can add for additional premium:

• ALTA Endorsement 8.1: environment.
• ALTA 9.x: restrictions, encroachments, easements.
• Inflation endorsement: adjusts coverage for inflation.
• HOA Endorsement: coverage against undisclosed HOA liens.
• Manufactured Housing Endorsement: for manufactured homes.

Discuss with your title agent which endorsements are relevant for your situation.

Comparison with Quebec

In Quebec, notary diligence + title insurance via Stewart Title or FCT covers essentially the same as Florida. Main difference is price (lower in QC) and the fact that title insurance is standard in FL, not optional.