When people think of insurance, the word expensive usually comes to mind. However, that is not the always the case with the cost of title insurance. In fact, title insurance is a one-time premium that can even protect you after you sell your home. The cost of title insurance is paid at the time of purchase and is usually included in the closing costs. Contrary to other forms of insurance, there are no annual premiums or renewal premiums.
How to Calculate the Cost of Title Insurance
While the real estate closing typically occurs at a title company, the purchase of title insurance is often handled by the real estate broker, lender, settlement attorney or other real estate professional. In certain parts of Florida, buyer will pay the title insurance costs, while in other parts the seller will pay the title insurance costs. Real estate practices often rely on local custom, making it difficult to generalize about such matters as whether the buyer or seller pays for title insurance, how much the title insurance will cost, and exactly what is included in the cost of title insurance.
The premium a Florida title office charges for a title insurance policy is filed with the State of Florida and referred to as the “Promulgated Rate.” Charges for title insurance vary because associated costs and the work included in the premium price vary from place to place. In some areas, for example, title search and title insurance are separated in the list of closing costs, and the cost of title insurance simply represents the risk premium.
Florida Owner’s Title Insurance Cost (original policies)
| Coverage | Per Thousand |
|---|---|
| From $0 to $100,000 | $5.75 |
| For $100,000 to $1 million, add | $5.00 |
| For $1 million to $5 million, add | $2.50 |
| For $5 million to $10 million, add | $2.25 |
| For over $10 million, add | $2.00 |
Florida Lender’s Title Insurance Cost (original policies)
| Coverage | Per Thousand |
|---|---|
| From $0 to $100,000 | $5.75 |
| For $100,000 to $1 million, add | $5.00 |
| For $1 million to $5 million, add | $2.50 |
| For $5 million to $10 million, add | $2.25 |
| For over $10 million, add | $2.00 |
Keep in mind, however, that these Florida title insurance rates are only for the cost of the title insurance premium. Florida title offices may have other fees associated with the issuance of title insurance; for example, settlement fees, title search fees, and title examination fees.
Because of these differences, some variation from the average title insurance costs cited above are to be expected. However, it is still wise to question the price you are quoted for title insurance, if it varies widely from these averages. Also note, when lender’s and owner’s policies are purchased together on the basis of the same title search, the total cost is often lower than when the two types of coverage are purchased separately.
Speak to a Florida Title Insurance Agent to Receive a Title Insurance Quote
As always, our Florida title insurance agents are available to answer any questions you may have about title insurance coverage, title insurance costs, or issues resolving problems with prior title insurance policies and title clouds. Call our Live Oak Florida Title Offices today at (386) 362-4419 or submit a request for a Florida title insurance quote online.