Title insurance protects against financial loss from a defect in the ownership of a property, such as an undisclosed lien, a forged signature, a missing heir or a recording error. A lender policy protects the lender for the loan amount. An owner policy protects you for the purchase price.
In Florida the price is set by the state
Florida uses promulgated rates, which means the Office of Insurance Regulation fixes the premium rather than each underwriter setting its own. Shopping underwriters therefore does not change the premium itself. What can differ is the settlement or closing fee the agent charges alongside it.
The promulgated schedule runs at $5.75 per $1,000 of liability up to $100,000, then $5.00 per $1,000 above that, with lower tiers on larger amounts.
Who pays depends on the county
Florida has no statewide rule. Custom decides it, and custom is not uniform.
In most of the state the seller pays for the owner policy. In Miami-Dade, Broward, Sarasota and Collier the buyer customarily pays. If you are buying in one of those four counties, your closing estimate carries a line that a buyer elsewhere in Florida never sees.
Custom is a starting point, not a rule. Who pays is negotiable and is written into the purchase contract, so confirm it there rather than assuming.
Owner policy versus lender policy
- The lender policy is required on every financed purchase and covers the loan balance, which declines as you pay down
- The owner policy is optional and covers your equity at the purchase price for as long as you or your heirs hold an interest
- Issuing both at the same closing earns a simultaneous issue rate, so the second policy costs far less than the first
Declining the owner policy to save money at closing leaves you carrying the title risk personally while the lender stays protected.
Where it sits in your closing costs
Title insurance is one line among several Florida-specific charges, alongside the documentary stamp tax and the intangible tax. Our Florida closing costs page breaks down the full set, and the home buying process guide covers when each is paid.
Definition reviewed by Renzo Johnson, Licensed Mortgage Loan Originator. Last updated August 2026.