Question 1

How are Florida title insurance rates regulated?

Accepted Answer

Rate regulation: Florida title insurance rates are promulgated (set by the state) by the Florida Office of Insurance Regulation (OIR). The current rate (effective since 2015): $5.75 per $1,000 of the purchase price for the owner’s policy, with a simultaneous issue discount available when the owner’s and lender’s policies are issued together. All title companies must charge the same rate (no competition on the premium amount). Competition is based on: service quality, closing experience, and additional services. The promulgated rate system ensures: uniformity (all buyers pay the same rate), consumer protection (no excessive pricing), and stability (the rate changes infrequently).

Question 2

What is the simultaneous issue discount in Florida?

Accepted Answer

Simultaneous issue: when both an owner’s policy and a lender’s policy are issued at the same closing, the buyer receives a discount on the lender’s policy. The owner’s policy is charged at the full promulgated rate ($5.75 per $1,000), and the lender’s policy is charged at a reduced rate (approximately $5.00 per $1,000 of the loan amount, subject to a stated minimum premium). This discount recognizes that the title search is performed only once for both policies, reducing the title company’s cost.

Question 3

What claims are most common under Florida owner’s title policies?

Accepted Answer

Common claims: lien claims (unpaid mortgages, tax liens, judgment liens, and contractor liens that were not discovered during the title search), boundary disputes (encroachments, survey errors, and boundary line conflicts), forgery and fraud (forged deeds, impersonation of the true owner, and fraudulent conveyances), probate issues (undisclosed heirs, improperly probated estates, and challenges to wills), and recording errors (incorrect legal descriptions, missing signatures, and improper notarization). The title company’s claim resolution process: investigates the claim, defends the insured (at the title company’s expense), and pays the loss if the claim is valid (up to the policy amount).

Owner's Title Insurance Policy

Florida Owner’s Title Insurance Policies

Rate Structure

Simultaneous Issue

Common Claims

Related Terms

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