Every closing statement in Florida has a line that many foreign buyers do not understand: “Owner’s Title Insurance.” Sometimes it costs $1,500, sometimes $2,500, sometimes more. Some buyers pay it without asking, and others ask whether they can drop it. Our short answer is that you should not drop it. The long answer is this article. Before getting into the insurance itself, it helps to understand what a property title is and how it is recorded in Florida, which we explain in our guide to property titles in Florida.
What a title policy protects
Title insurance protects the owner against problems in the property’s legal history that existed before the purchase and that nobody caught. It does not look forward the way homeowners insurance does. It looks backward.
Before issuing the policy, the title company searches the county’s public records: prior deeds, mortgages, liens, court judgments, easements. Based on that search, it prepares a title commitment that lists what has to be cleared before closing. The insurance covers what the search did not find or could not find.
A few examples of what can go wrong:
- A prior deed was signed by someone who was not the real owner (identity theft or forgery).
- An heir nobody knew about claims a share of the property.
- A contractor who remodeled the home years ago was never paid and recorded a lien.
- A clerical error in the county records described the lot incorrectly.
- A prior divorce was not properly settled, and an ex-spouse still has rights to the home.
Any of these can cost tens of thousands of dollars in legal fees. With a policy in place, the insurer pays for your legal defense and, if you lose, covers the loss up to the insured amount.
Owner’s policy vs. lender’s policy
Florida has two types of policies, and they protect different people:
| Feature | Owner’s policy | Lender’s policy |
|---|---|---|
| Who it protects | The buyer | The bank that issues the mortgage |
| Is it required? | Not by law, but strongly recommended | Yes, if you finance the purchase |
| Insured amount | Purchase price | Loan amount |
| How long it lasts | As long as you or your heirs own the property | Until the loan is paid off |
| Cost | Set by the state rate schedule | Nominal charge when issued with the owner’s policy, plus endorsements |
The most common mistake buyers with a mortgage make is assuming that because the bank requires title insurance, they are covered too. They are not. The lender’s policy protects the bank’s money. If a title problem comes up, the bank gets made whole and you could lose your down payment.
If you pay cash, there is no lender’s policy. The owner’s policy is the only protection you have.
What it costs: rates set by the state
Florida is one of the few states where the price of title insurance is not up to the company. The Florida Office of Insurance Regulation (OIR) sets it, so the base premium is the same at every title company. What does vary from one company to another are service fees: search, settlement, document delivery.
| Insured value tier | Rate per $1,000 |
|---|---|
| Up to $100,000 | $5.75 |
| $100,001 to $1,000,000 | $5.00 |
| $1,000,001 to $5,000,000 | $2.50 |
| $5,000,001 to $10,000,000 | $2.25 |
| Over $10,000,000 | $2.00 |
Source: promulgated rates from the Florida Office of Insurance Regulation.
Using those rates, the owner’s policy premium works out like this:
- $300,000 home: $575 for the first $100,000 + $1,000 for the remaining $200,000 = $1,575
- $450,000 home: $575 + $1,750 = $2,325
- $1,200,000 condo: $575 + $4,500 + $500 = $5,575
As a share of the price, that is between 0.45% and 0.55% for most residential properties, and you pay it only once, at closing.
Who pays, depending on the county
Florida law does not say who pays for the owner’s policy. The contract decides, and in practice each county has its own custom.
- Miami-Dade, Broward, Collier, and Sarasota: the buyer customarily pays and also chooses the title company.
- Orange, Osceola, and most Central Florida counties: the seller customarily pays and chooses the title company.
For a buyer looking at homes in Orlando or Kissimmee as well as in Miami, the difference is real. On a $450,000 home in Osceola County, the seller usually covers the $2,325 policy. On a condo at the same price in Brickell, that cost is yours. Everything is negotiable in the offer, and in a market with more inventory, like the 2026 condo market, asking the seller to cover it is a reasonable request.
What title insurance does not cover
A standard policy has exclusions, and you should know them before you sign:
- Boundary disputes or encroachments that would only show up on a survey, unless you pay for the matching endorsement.
- Open permits and municipal code violations that are not recorded as liens. A separate municipal lien search covers those.
- Unpaid HOA or condo dues, which are checked with an estoppel certificate from the association.
- Problems you knew about and did not disclose.
- Wire fraud. If a scammer emails you fake wiring instructions and you send money to the wrong account, title insurance will not get it back.
That last point deserves emphasis. Email impersonation scams around real estate closings are common. Before you send any wire, confirm the instructions by phone with the title company, using a number you look up yourself, not the one in the email.
Endorsements worth asking for
An endorsement extends the policy to cover risks the standard version leaves out. Each one costs extra, usually not much compared with the premium, and not every endorsement applies to every property.
For one-to-four-unit homes and condos, many title companies offer the enhanced homeowner’s policy (ALTA Homeowner’s Policy) instead of the standard one. It extends coverage to situations such as violations of community restrictions, certain access issues, and some past building permit problems. It costs a little more, but for a buyer who does not know the neighborhood’s history, it is usually worth it.
For condos, the condominium endorsement is common. It protects against problems with the declaration of condominium and with rights to the common areas. In HOA communities, the planned unit development endorsement plays a similar role.
If the title commitment includes a survey exception, ordering an updated survey and the survey endorsement lets you remove it. That is how the policy ends up covering fences, pools, or structures that cross onto a neighbor’s lot.
Ask the title company which endorsements it recommends for your property and get the quote in writing before closing. That way there are no surprises on the final statement.
Title insurance when you buy through an LLC or from abroad
Two situations that are typical for foreign buyers deserve extra attention.
Buying through an LLC. The policy must be issued in the LLC’s name from closing. If you buy in your own name and transfer the property to an LLC months later, the coverage may not follow the new owner. There are endorsements that fix this, but it is simpler to decide on your structure before you buy.
Closing from your home country. Florida allows remote online notarization, and the title company coordinates signatures, apostilles, and funds so you do not have to travel. Even so, have someone who understands it review the title commitment line by line. The exceptions listed in Schedule B of the commitment are exactly what your policy will not cover later.
Reviewing that document, the community restrictions, and the contract is part of the work our team does through our legal advice to protect your real estate investment in Florida, where we guide foreign buyers from the offer through the recording of the deed.
Example: how it shows up on your closing statement
Let’s compare two purchases at the same price, $450,000, each with a $300,000 loan.
| Item | Home in Kissimmee (Osceola) | Condo in Brickell (Miami-Dade) |
|---|---|---|
| Owner’s policy | $2,325, usually paid by the seller | $2,325, usually paid by the buyer |
| Lender’s policy | Nominal charge plus endorsements, paid by the buyer | Nominal charge plus endorsements, paid by the buyer |
| Municipal lien search | $150 to $350 | $150 to $350 |
| Estoppel certificate | If there is an HOA, paid per the contract | Yes, from the condo association |
| Buyer’s title cost | Lower | Higher |
A $2,325 difference looks small next to $450,000, but at a closing where you are already paying documentary stamp taxes, loan fees, and prorations, it is an amount worth negotiating.
Frequently asked questions about title insurance in Florida
Is owner’s title insurance required in Florida?
It is not required by law. If you buy with a mortgage, the bank requires its own policy, but the owner’s policy is optional. Even so, it is the only protection you have against hidden title defects, and you pay for it just once.
How much does title insurance cost in Florida?
The state sets the rate: $5.75 per $1,000 up to $100,000 and $5.00 per $1,000 between $100,000 and $1,000,000. On a $450,000 home, the owner’s policy costs $2,325.
Who pays for title insurance in Orlando and in Miami?
In Orange and Osceola counties, the seller customarily pays. In Miami-Dade, Broward, Collier, and Sarasota, the buyer pays. Either way, it can be negotiated in the contract.
Does title insurance protect me if my closing wire is stolen?
No. Fraud involving fake wiring instructions is not covered. Always confirm the instructions by phone with the title company before sending money.
Can I buy title insurance from any company?
Yes, and the base premium will be the same because it is regulated. What is worth comparing is each title company’s service fees and its experience with foreign buyers and remote closings.
A clean title is the foundation of any safe investment in Florida. Protect your purchase with legal guidance and review your title commitment with our team before you sign.
