Title Insurance 101

Title Insurance is a type of insurance that protects both the homebuyer and the mortgage lender from any potential financial losses or legal issues related to the property’s title. 

Two Types of Title Insurance

In Florida there are two types of title insurance: lender’s title insurance and owner’s title insurance. Lender’s insurance protects your mortgage lender’s interest in their mortgage lien on your property. Owner’s title insurance protects your interests as a homeowner. 

Why Title Insurance Matters

Your home is one of the most significant investments you’ll ever make. Title insurance gives you peace of mind by ensuring that your investment is protected from hidden issues that could jeopardize your ownership. Title insurance protects your rights as homeowner and requires the title insurer to bear the cost of defending title claims. 

Title Search and Examination Process 

A title professional will search public records to trace the property’s ownership history. This includes outstanding liens, judgments, or claims against the property. Once the search is completed, a title examiner will review the findings to determine how to resolve any title issues. 

The Cost of Title Insurance 

The State’s formula for determining the title premium is calculated according to the property’s purchase price and the loan amount. Title insurance is a crucial component of the home-buying process in Florida. Investing in title insurance is not just a financial safeguard; it is a wise and prudent decision to protect your most valuable asset–your home.

For more information, contact our office at Askew & Associates, P.A. by calling 954-546-2699.

Disclaimer: this blog post is not intended to be legal advice. We highly recommend speaking to an attorney if you have any legal concerns.