The Dominion Difference

Title insurance will protect an owner’s or a lender’s financial interest in real property against loss due to title defects such as fraudulent conveyances, unpaid liens, boundary issues, and other matters. It will defend against a lawsuit attacking the title as it is insured, and/or reimburse the insured for the actual monetary loss incurred, up to the dollar amount of insurance provided by the policy. It is important to understand that these claims can arise from a past event that could not be discovered in a public record search, making title insurance a key value.

Title fees and premium generally run about 1.0% of the purchase price or amount financed. They are paid only one time and are not renewable, last as long as you own the property or in the case of a loan policy until the mortgage is paid off or satisfied. The liability limit of the policy is typically the purchase price paid for the property. As with other types of insurance, the types and amount of coverages can be added or deleted with an endorsement.

There are typically two types of fees:

1. The Insurance Premium which is set by the State of Florida and is approximately $5.35 per $1000.00 insured. The cost is a promulgated rate set by the State of Florida, remaining the same with every title agency
2. Title Company service fees which comprise the Search and Examination and the settlement fee.

Typically, the seller pays for the owner’s policy but this is negotiable. There is no law that states you must buy an owners title insurance policy. Lenders are required to have their loan insured by a lender’s loan policy that is usually paid by the borrower.