What Is Title Insurance And Why Do I Need It?
Title insurance protects buyers and lenders against past owners or someone else claiming rights on their property. It ensures a clear, marketable legal title transfer. So, somebody else can’t claim they own your house.
A title search looks for outstanding liens and other encumbrances and restrictions. These include—but are not limited to—unpaid taxes, unreleased liens, unsatisfied mortgages, judgments against the seller, and restrictions limiting the use of the land.
You pay for the title insurance once at closing as part of total closing costs. The policy remains in effect for as long as you or heirs own the property. When you refinance your mortgage, your lender requires title insurance to ensure that you are the rightful owner of the property.
The cost of Title insurance is regulated by the state of Florida which specifies rates for original owner and leaseholder title insurance coverage, reissue rates, a new home purchase discount, and other situations.
If a prior owner’s policy exists, as on a refinance, reissue rates should be charged. Which gives you a discount on the new policy. Simultaneous issue rates apply when an owner’s policy and a lender’s policy are issued at the same time, within the same transaction by the same insurer. So that’s what title insurance is.