Top 10 Questions about Title Insurance

Confused about title insurance? Below, we answer some of the most common questions about title insurance.

What Is Title Insurance?

Title insurance protects buyers against potential loss if there should be a problem with the title of the property by providing proof of ownership by guaranteeing that no one else has a claim, lien, or encumbrance to the property.

What Is Protected by Title Insurance?

Basically, title insurance provides coverage from defects or errors that may have occurred in the public records when a property was purchased. Such defects might include:

  • Undisclosed heirs
  • Forgery
  • Liens for unpaid taxes
  • Contractor liens
  • Property accessibility

Why Do Buyers Need Title Insurance?

Title insurance helps remove some of the risk of purchasing real estate by ensuring that the title issued to you is supported by due diligence.

How Is Title Insurance Different from a Homeowners Policy or Other Type of Insurance?

A homeowners policy provides protect against losses resulting from fire, theft, natural disasters, vandalism, or personal liability. While a homeowners policy can be canceled, title insurance remains in effect as long as the owner holds the property.

Why Should Owners and Lenders Have Their Own Policies?

A lender needs a lenders policy to assure separate protection against possible title defects. It should be kept in mind that the typical mortgage does not provide for the full replacement cost of a property.

How Does Title Insurance Work If There Is a Problem After a Property Is Purchased?

Most title issues are identified and resolved prior to a real estate transaction closing, but in some circumstances, such issues may not be uncovered until later. The purpose of title insurance is to cover the legal costs associated with defending the interest of a homeowner, including indemnification against losses arising from claims.

Who Is Responsible for Paying for Title Insurance

In the State of Florida, this varies with each county. Typically, the buyer pays for title insurance in Collier, Miami-Dade, Sarasota and Broward counties.  Otherwise, seller pays title.  Keep in mind this fee can be negotiated in the contract.

How Long Does Coverage for a Title Insurance Policy Last?

A title insurance policy is in effect as long as the owner has an interest in the property. In the event of the death of the property owner, his or her title coverage will extend automatically to their heirs.

How Are Premiums Paid for Title Insurance?

Unlike other forms of insurance, the premiums for a title insurance policy are paid only once, at the time the policy originates and when the escrow on the transaction closes. Buyers need never worry about paying additional premiums or payments. The cost of a title insurance policy is based on the dollar amount of the coverage.

What Does Title Insurance Cover?

The basic risks covered by title insurance include:

  • Impersonation and forgery
  • Warranty deed not recorded properly
  • Undisclosed prior lien or mortgage
  • Undisclosed easement
  • Off-record matters
  • Pre-existing violations of zoning ordinances or subdivision laws
  • Incorrect survey


For more information please call Melissa Morrison at 239-689-8175 or email melissa.morrison@hyperiontitle.com.