The misconception of Title Insurance is costing Florida homeowners dearly. I would like to clarify the real value of Owner’s Title Insurance for all those impacted by the Florida real estate market, from the individual homeowner to the State economy.
When an Owner’s Title Insurance is purchased, primarily it is for the prevention of claims against home ownership. When a company provides title insurance, a title search is part of the risk assessment done before issuing a policy. The title insurance company’s objective is in lockstep with the consumer’s best interest: to avoid questions or challenges of the homeowner’s title. Thus in the examination of public records, the title company has a vested concern to find any and all complications to the ownership title. We just do not say, as quoted in a famous movie, “This house is clean.”* You saw how well that went—they should have gotten a policy as their house is being sucked into oblivion! We put our money where our mouth is and insure it.
Though title insurance works mostly through prevention, it offers security via financial protection from the massive costs of litigation and other legal expenses should a problem, challenge, or complication to a Florida homeowner’s title arise. No matter how much effort is put into this prevention, bad things still happen. It’s expensive to be right when someone thinks you’re wrong. Owner’s Title Insurance provides and pays for all costs associated with a title claim (whether through settlement, legal defense, and / or reimbursement of the policy amount to the homeowner if that defense does not prevail).
The cost of Owner’s Title Insurance is promulgated by the State of Florida, and the current rate has been the same for 20 years. It is a nominal fee when compared to what litigation costs are. Furthermore, Owner’s Title insurance is a one-time fee, typically paid at the closing of a real estate transaction. Once it’s paid, it’s paid—no monthly premiums, no annual fees—no additional charge to the consumer, the homeowner.
With Owner’s Title Insurance, consumers pay a set amount for financial protection against the unknown cost of hidden risk to home ownership.
Please refer to the numerous posts in my blog for examples of hidden risk to home ownership. These issues are real and can be devastating to those who are not insured.
Homeowners need Owner’s Title Insurance now more than ever. Title Insurance plays a vital role in Florida’s recovering housing market. As a source of financial protection, Owner’s Title Insurance assures potential Florida buyers they can invest in real estate with stable value backing that investment.
Owner’s Title Insurance is good home economics. It nurtures financial security for the homeowner, the State budget, and the Florida economy. Owner’s Title Insurance adds real value to real estate rights, thus it benefits every Florida citizen.