Quick answer (TL;DR)
The purchase contract decides who pays. On the standard Florida Realtors/Florida Bar “AS IS” contract, the parties check one box: the seller picks the closing agent and pays for the owner’s policy (the buyer pays for the lender’s policy), or the buyer picks the agent and pays, or a Miami-Dade/Broward regional option applies. Custom differs by county, so confirm it with your closing agent. The premium is set by state rule, so a $750,000 owner’s policy costs $3,825 at any title agent.
Florida title insurance has two parts: a premium the state sets and every insurer must charge, and title service fees that vary from one title agent to the next. Who pays each part comes down to the box checked in your contract.
Who pays for title insurance in Florida? The contract decides
Florida’s Department of Financial Services (DFS) puts it simply: “In Florida, the buyer or seller may purchase both the lender’s policy and the owner’s policy.” The answer for your deal is in the purchase contract. In the edition of the Florida Realtors/Florida Bar “AS IS” contract reviewed for this guide (ASIS-4, Rev. 9/15), paragraph 9(c) bundles the owner’s policy premium, title search and closing services as “Owner’s Policy and Charges,” then asks the parties to check one option:
- Option (i): the seller pays. The seller designates the closing agent and pays the Owner’s Policy and Charges. The buyer pays the lender’s policy premium and the closing charges for that policy, endorsements and the loan closing.
- Option (ii): the buyer pays. The buyer designates the closing agent and pays the Owner’s Policy and Charges, plus the lender-side closing charges.
- Option (iii): Miami-Dade/Broward regional provision. The seller furnishes prior title evidence and pays for its update, a tax search and a municipal lien search; the buyer pays the owner’s and any lender’s policy premium.
The contract also warns that premiums are “calculated and allocated in accordance with Florida law, but may be reported differently on certain federally mandated closing disclosures.” If your Closing Disclosure’s title lines do not match this guide, ask your closing agent for the Florida allocation.
What about Palm Beach County custom? Which box is “normal” varies county by county in Florida, as Realtor training materials on this contract note. Custom is a starting point for negotiation, not a rule. Before you write or accept an offer, ask the closing agent which option is usual locally. The box actually checked is what binds the parties.
Paying for the policy usually means choosing the closing agent
Standard I printed with the contract says closing takes place at the office of the closing agent “designated by the party paying for the owner’s policy of title insurance,” or by the seller if there is no title insurance. DFS describes the same practice: the party paying the premium gets first choice of closing agent, the lender must approve it, and the parties may instead do a split closing with each side using its own agency.
Owner’s policy vs. lender’s policy
A financed purchase usually carries two policies, and the lender’s policy does not protect you. Florida law directs regulators to adopt a notice telling a borrowing buyer exactly that (s. 627.798, F.S.).
| Owner’s policy | Lender’s (loan) policy | |
|---|---|---|
| Protects | The buyer as owner | The lender’s mortgage |
| Amount | The full insurable value; DFS says this is the sale price | At least the full principal debt, and up to 25 percent more to cover interest and foreclosure costs |
| How long it lasts | No expiration date; in force while you or your heirs own the property | Until the loan is paid in full |
| Premium | One-time promulgated premium | A minimum of $25 when issued simultaneously with the owner’s policy, up to the owner’s policy amount |
| Who pays under FR/BAR option (i) | Seller | Buyer |
Sources: rule 69O-186.003(1) and (5), Florida Administrative Code, and the DFS title insurance overview. Cash buyers have no lender’s policy, and the standard contract still provides for an owner’s policy to be delivered to the buyer after closing.
What title insurance covers, and what it does not
Title insurance protects against loss from title defects. DFS gives examples: a prior recorded mortgage, a judgment, tax or environmental lien, a notice of pending legal action, an easement, or a restriction or burdensome covenant running with the land. If your title is challenged, DFS says the underwriter (not the title agent) defends it and pays covered loss, up to the policy limit. Florida law adds three points:
- A search comes first. No commitment or policy may issue until insurability is determined from a reasonable title search (s. 627.7845), and “casualty” title insurance issued without regard to defects is prohibited (s. 627.784).
- The gap is covered when the insurer handles the money. If the insurer or its agent disburses closing funds, it must insure against defects recorded between the commitment date and the recording of your deed, except matters you knew about (s. 627.7841).
- You pay once. The premium is one-time, not annual.
Common exclusions, per DFS: defects created or agreed to by the policyholder after the policy date, eminent domain, and laws or regulations restricting use of the land. Schedule B of your title commitment lists the exceptions your policy will not cover. If a trust is taking title, our guide to escrow and title mechanics when a trust owns the Florida property covers the extra steps.
Florida title insurance rates are set by rule
Florida title insurers do not compete on the premium. Section 627.782 requires the premium to be adopted by rule and applied statewide, and section 627.780 bars knowingly charging any other premium, with one narrow exception. The current schedule is rule 69O-186.003, Florida Administrative Code, last amended effective January 27, 2002; its rate subsections took effect July 1, 2002. DFS’s own example: anyone issuing a $100,000 owner’s policy in Florida should charge exactly $575.
| Amount of insurance | Original owner’s or loan policy, per $1,000 | Reissue rate, per $1,000 |
|---|---|---|
| First $100,000 | $5.75 | $3.30 |
| $100,000 to $1 million | $5.00 | $3.00 |
| Over $1 million up to $5 million | $2.50 | $2.00 |
| Over $5 million up to $10 million | $2.25 | $2.00 |
| Over $10 million | $2.00 | $1.50 |
| Minimum premium | $100 | $100 |
Each rate applies only to the slice of coverage inside its bracket, like income tax brackets, and any fraction of $100 counts as a full $100. Under section 627.7711, the premium includes the “primary title services”: determining insurability and issuing the commitment and policy.
Worked examples: $750,000 and $1,500,000
Premiums only, before endorsements and the separate title service charges covered below.
Owner’s policy on a $750,000 purchase:
- First $100,000: 100 x $5.75 = $575.00
- Next $650,000 ($100,000 to $750,000): 650 x $5.00 = $3,250.00
- Owner’s premium: $575.00 + $3,250.00 = $3,825.00
- Add a simultaneously issued lender’s policy for a $600,000 loan (less than the owner’s policy): $25.00, for a total of $3,850.00
Owner’s policy on a $1,500,000 purchase:
- First $100,000: 100 x $5.75 = $575.00
- Next $900,000 ($100,000 to $1,000,000): 900 x $5.00 = $4,500.00
- Next $500,000 ($1,000,000 to $1,500,000): 500 x $2.50 = $1,250.00
- Owner’s premium: $575.00 + $4,500.00 + $1,250.00 = $6,325.00
- Add a simultaneously issued lender’s policy for a $1,200,000 loan: $25.00, for a total of $6,350.00
The same arithmetic gives these original owner’s premiums at other price points:
| Owner’s policy amount | Original premium (rule 69O-186.003) |
|---|---|
| $500,000 | $2,575 |
| $1,000,000 | $5,075 |
| $2,000,000 | $7,575 |
| $3,000,000 | $10,075 |
| $5,000,000 | $15,075 |
| $10,000,000 | $26,325 |
Simultaneous issue: why the lender’s policy is so cheap
Rule 69O-186.003(5) covers an owner’s policy and a mortgage policy on identical land issued at the same time. The owner’s policy is charged the regular owner’s rate. The mortgage policy “will be a minimum $25.00 for an amount of insurance not in excess of the owners policy.” Any part of the lender’s policy above the owner’s policy amount is rated at the regular original mortgage rates. Both policies must bear identical dates, and the owner’s policy must show the mortgage as an exception in Schedule B.
So under option (i), the seller pays the large owner’s premium and the buyer’s lender’s policy is rated at the $25 simultaneous figure plus endorsements. If you are structuring a large loan, our article on jumbo and asset-based financing covers the lender side.
Reissue rates: when the seller’s old policy lowers the premium
Under rule 69O-186.003(2), the lower reissue rates apply when a previous owner’s policy insured the seller (or the borrower), both the reissuing agent and the underwriter keep copies of that prior policy, and one of three conditions is met:
- The land is unimproved, except for roads, bridges, drainage facilities and utilities, and the current owner’s title was insured before;
- The new policy’s effective date is less than 3 years after the effective date of the policy insuring the seller; or
- It is a mortgage policy on a refinance of property insured by an original owner’s policy that insured the current borrower.
Coverage above the prior policy amount is charged at original rates. Example: a condominium bought with a $1,500,000 owner’s policy and resold for $1,500,000 within 3 years qualifies on the full amount. The reissue premium is 100 x $3.30 = $330, plus 900 x $3.00 = $2,700, plus 500 x $2.00 = $1,000, for $4,030, compared with $6,325 at original rates, a difference of $2,295. This is why the contract asks a seller with an owner’s policy to furnish a copy within 5 days after the effective date.
Buyers of brand-new homes should ask about one more reduction. Rule 69O-186.003(3) gives a new home purchase discount on the first sale of a one-to-four family home with a certificate of occupancy, if the seller has not leased or occupied it. The discount equals the premium paid for prior loan policies on mortgages the seller gave on the property, with a $200 minimum premium, and it cannot be combined with other reductions. See our comparison of new construction and resale in Palm Beach County.
Endorsements
Endorsements adjust coverage for specific risks, and rule 69O-186.005 sets their premiums. Listed endorsements such as ALTA 4/4.1 (condominium), ALTA 5/5.1 (planned unit development) and ALTA 8.0/8.1 (environmental protection lien) carry a $25 minimum each. For one-to-four family residential risks, endorsements on the rule’s approved list carry a $25 minimum and $100 maximum each, except Florida Endorsement Form 9 (restrictions, easements, minerals) and the navigational servitude endorsement, priced at a minimum of 10 percent of the total policy premium. Each endorsement and its cost must be itemized on the closing statement.
The title fees the state does not set
The premium is fixed; the related title services are not. Section 627.7711 excludes the title search and closing services from the premium and allows separate charges for them. Rule 69O-186.003(11) requires at least actual cost to be charged for search, examination and closing, each shown separately from the premium on the closing statement. DFS advises comparing more than one agency, noting that the agent’s portion of the premium and title agency fees may be negotiated.
Compare the full fee sheet, not the premium. Two title agents will quote the same premium. The difference is in the search, examination, closing, lien search and endorsement lines, so ask each for an itemized estimate.
Title charges are only one part of the closing statement. Our guide to Florida closing costs in Palm Beach County covers documentary stamp taxes, intangible tax and the other lines.
Can the seller make you use their title company?
Federal law limits this. Section 9 of the Real Estate Settlement Procedures Act, 12 U.S.C. 2608, says no seller of property that will be bought with a federally related mortgage loan may require, directly or indirectly, as a condition of the sale, “that title insurance covering the property be purchased by the buyer from any particular title company.” A seller who violates it is liable to the buyer for three times all charges made for that title insurance.
The statute addresses title insurance purchased by the buyer. Under option (i), the buyer pays for the lender’s policy and loan closing “to Closing Agent or such other provider(s) as Buyer may select.” DFS adds that you are not obligated to use a title agency suggested by your agent, lender or attorney, and suggests asking whether anyone recommending an agency has a financial interest in it.
A short checklist for Palm Beach County buyers and sellers
- Before writing or countering an offer, ask the closing agent which 9(c) option is customary for the county, and treat it as negotiable.
- Sellers: find your owner’s policy now. If it is less than 3 years old, the reissue rate may apply.
- Buyers: price the premium with the rate table above, then get itemized estimates for the other title charges.
- Read the title commitment and its Schedule B exceptions as soon as it arrives. In the contract edition reviewed, it is due 15 days before closing if the blank is empty, or 5 days on a cash purchase.
Title terms are negotiated in the offer. Our guides to preparing a luxury home offer and what “as is” means in a Florida luxury contract cover the rest of the contract, and our guide to buying a condo in Florida covers the association documents that come with a unit purchase.
Frequently Asked Questions
Who pays for title insurance in Florida, the buyer or seller?
Whoever the contract says. The Florida Realtors/Florida Bar “AS IS” contract lets the parties check whether the seller or the buyer designates the closing agent and pays for the owner’s policy, title search and closing services, with a separate regional option for Miami-Dade and Broward. Custom varies by county, so confirm local practice with your closing agent.
Who pays for the lender’s title insurance in Florida?
Under the seller-pays option of the Florida Realtors/Florida Bar contract, the buyer pays the premium for the lender’s policy and the related loan closing charges. When the lender’s policy is issued with the owner’s policy, rule 69O-186.003(5) rates it at a minimum of $25 for coverage up to the owner’s policy amount, plus endorsements.
Is owner’s title insurance required in Florida?
A lender may require a lender’s policy as a condition of the loan, but that policy protects only the lender. The owner’s policy protects the buyer, and the standard Florida Realtors/Florida Bar contract provides for one to be obtained and delivered to the buyer after closing.
How much is title insurance in Florida?
The premium is set by rule 69O-186.003: $5.75 per $1,000 for the first $100,000, $5.00 per $1,000 from $100,000 to $1 million, $2.50 per $1,000 from $1 million to $5 million, and lower rates above that. A $750,000 owner’s policy is $3,825 and a $1,500,000 policy is $6,325. Title search, examination and closing fees are separate and vary by agent.
What is a reissue rate for title insurance?
It is a lower Florida premium, $3.30 per $1,000 for the first $100,000 and $3.00 per $1,000 up to $1 million, available when the seller’s prior owner’s policy is produced and the new policy is effective less than 3 years after it, the land is unimproved, or the policy is a mortgage policy on a refinance. Coverage above the prior policy amount is charged at original rates.
Please note: This guide is general information, not legal or tax advice. Confirm how these rules apply to your purchase or sale with a Florida real estate attorney and your title company. Premium figures are computed from rule 69O-186.003, Florida Administrative Code, and statute text cited is the 2026 Florida Statutes, read on October 20 and 21, 2026.
Sources: Florida Administrative Code rules 69O-186.003 and 69O-186.005; Florida Statutes 627.7711, 627.780, 627.782, 627.784, 627.7841, 627.7845 and 627.798; Florida Department of Financial Services, Title Insurance Overview and A Guide to Title Insurance; 12 U.S.C. 2608; Florida Realtors/Florida Bar “AS IS” Residential Contract for Sale and Purchase (ASIS-4, Rev. 9/15), paragraph 9(c) and Standard I.
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