What is the likelihood that a title defect will appear?
The likelihood is not great, but the financial ramifications could be devastating. It is very expensive and time consuming to go to Land Court to cure even simple title defects.

What does title insurance do if a title defect is discovered?
If the insured party is a defendant in a lawsuit involving a covered matter, the title insurance company hires counsel and pays for the costs of the defense, even if the action against the insured has no merit. If there is a loss to be paid under the policy, the title insurance company’s reserves will cover it.

Why does your lender require title insurance during refinancing?
From the lender’s standpoint, a refinanced mortgage is actually a brand new mortgage – complete with the same risks that may have been present originally. During the refinance process, your original mortgage is paid off – and your existing lender’s title insurance policy is rendered null and void. However, if you purchased an owner’s policy of title insurance at your original closing – that policy will remain in effect as long as you or your heirs own the property.

How can I save money on my title policy?
If you are selling a property on which you were issued an owner’s policy within the last three years, you are likely eligible for a re-issue credit. If you are refinancing a property on which you were issued an owner’s policy, you will be eligible for the re-issue credit, regardless of the age of the owner’s policy. This credit can result in substantial savings, often hundreds or thousands of dollars.

Can I choose my own title insurance company?
Yes. By law you have the legal right to select your own title company for any type of transaction, including purchases and refinances.

How are the rates for title policies determined?
Should I shop title companies based on their rates? The State of Florida sets the rates for title policy premiums so every title company will charge you the same rate for the same amount of coverage. Instead of shopping based on policy rates, compare title companies based on reputation and the level of service they provide.