Title insurance protects real estate owners and lenders against any property loss or damage they might experience because of liens, encumbrances or defects in the title to the property. Each title insurance policy is subject to specific terms, conditions and exclusions. There are two types of title insurance policies – an owner’s policy and one for lenders.
A title policy insures against events that occurred in past ownership or interest of the real property its only paid for a one-time premium at the time of closing. In Florida, the owner’s title insurance premium is customarily paid for by the seller as part of their closing costs. The mortgage or lender’s policy is paid for by the buyer and is included in their loan estimate of closing costs.