In Florida, who pays for title insurance depends on the county. In most of the state the seller pays for the owner’s title insurance policy and the buyer pays for the lender’s policy required by the mortgage company. In Broward, Collier, Miami-Dade, and Sarasota counties, the buyer customarily pays for both. No Florida statute assigns these costs to either side, so the split is ultimately whatever the purchase contract says.
County Customs Across Florida
The majority of Florida’s 67 counties follow the “seller pays” custom for the owner’s policy. That pattern covers most of North, Central, and parts of South Florida, including Alachua, Duval, Orange, Hillsborough, Pinellas, and Palm Beach. The buyer, in those counties, picks up only the lender’s policy.
Four high-population counties flip the custom. In Broward, Collier, Miami-Dade, and Sarasota, the buyer customarily pays for the owner’s policy on top of the lender’s policy. Because Miami-Dade and Broward together account for a large share of Florida closings, many buyers moving within the state are surprised to learn they’re expected to cover a cost sellers absorb almost everywhere else.
Monroe County is its own case. Customs there can shift depending on whether the property sits in Key West, the Upper Keys, or the mainland portion of the county. If you’re buying in Monroe, ask your title agent or real estate attorney which local practice applies.
None of these customs are legally binding. They are starting points for negotiation. A real estate agent familiar with the local market will know which custom applies and how flexible sellers tend to be in practice.
What Each Policy Actually Covers
Florida recognizes three types of title insurance: an owner’s policy, a lender’s policy, and a leasehold policy.1Florida Department of Financial Services. Title Insurance Overview Residential purchases usually involve the first two.
The owner’s policy protects you as the buyer. If someone later surfaces with a legitimate claim against the title, such as an unpaid tax lien left by a previous owner, a forged deed in the chain of title, an undisclosed easement, or a judgment lien recorded before your purchase, the policy covers your legal defense and any covered losses.2Florida Department of Financial Services. Title Insurance You pay the premium once at closing, and coverage lasts as long as you or your heirs own the property.1Florida Department of Financial Services. Title Insurance Overview
The lender’s policy protects the bank, not you. Your lender will almost certainly require it as a condition of the mortgage, and it covers the lender’s security interest in the property if a title defect surfaces later.2Florida Department of Financial Services. Title Insurance A cash buyer with no mortgage has no lender’s policy to worry about, though an owner’s policy still makes sense for the buyer’s own protection.
How Much It Costs
Florida title insurance premiums are not set by competing companies. The Florida Office of Insurance Regulation publishes a fixed rate schedule every title agent in the state must follow, so the premium for a given policy amount is the same whether you close with a national company or a small local firm.
The rate schedule is tiered by the policy amount:
- First $100,000: $5.75 per $1,000 of coverage
- $100,001 to $1 million: $5.00 per $1,000
- $1 million to $5 million: $2.50 per $1,000
- $5 million to $10 million: $2.25 per $1,000
- Over $10 million: $2.00 per $1,000
The minimum premium for any policy is $100.3Legal Information Institute. Florida Admin Code 69O-186.003 – Title Insurance Rates
On a $300,000 home, the first $100,000 of coverage costs $575 and the remaining $200,000 costs $1,000, for a $1,575 owner’s premium. That’s real money, which is why which side of the closing table pays matters.
The Simultaneous Issue Discount
When an owner’s policy and a lender’s policy are issued at the same closing, which happens in virtually every financed purchase, the lender’s policy drops to a flat $25 as long as the mortgage amount doesn’t exceed the owner’s policy amount.3Legal Information Institute. Florida Admin Code 69O-186.003 – Title Insurance Rates The owner’s policy is still calculated at the full rate. On the $300,000 example, the two policies together cost $1,600 instead of what would otherwise be close to $2,850. The discount is automatic at closing, but it’s worth confirming on your Closing Disclosure that the simultaneous rate was used.
The Reissue Rate Discount
If the property already has an existing title policy, you may qualify for a reduced “reissue” rate on the new owner’s policy. For a sale or purchase, the prior policy generally needs to have been issued within the last three years. For a refinance, there is no time limit on the prior policy.
- First $100,000: $3.30 per $1,000
- $100,001 to $1 million: $3.00 per $1,000
- $1 million to $10 million: $2.00 per $1,000
- Over $10 million: $1.50 per $1,000
The minimum premium is still $100.3Legal Information Institute. Florida Admin Code 69O-186.003 – Title Insurance Rates On the $300,000 home, the reissue rate brings the owner’s premium down to $930. Not every title agent will volunteer this discount, so ask whether a prior policy exists and whether the reissue rate applies. The seller’s previous policy or the closing file from the last sale is usually the proof you need.
Negotiating a Different Split
Because no Florida law assigns these costs, everything is negotiable. The county customs are defaults, useful for setting expectations but not for settling arguments. The purchase contract controls.
Market conditions drive how far the custom will bend. In a seller’s market with multiple competing offers, sellers are unlikely to take on additional closing costs. In a slower market, a buyer might reasonably ask the seller to cover the owner’s policy even in a buyer-pays county like Miami-Dade. The negotiation usually happens alongside the broader conversation about closing costs, repair credits, and purchase price.
One practical point: the party who pays for the owner’s title insurance typically gets to choose the title company and closing agent. The title premium itself is the same everywhere, but the fees title companies charge for closing services and document preparation are not regulated and can range from a few hundred dollars to over a thousand. Choosing the title company gives you some control over the overall closing bill.
The Seller Cannot Require a Specific Title Company
Federal law puts one hard limit on this negotiation. Under the Real Estate Settlement Procedures Act, a seller cannot require a buyer to purchase title insurance from a specific company as a condition of the sale when the purchase involves a federally related mortgage loan.4Office of the Law Revision Counsel. 12 USC 2608 – Title Companies; Liability of Seller That covers the large majority of residential transactions.
The penalty is steep. A seller who violates the rule becomes liable to the buyer for three times the total charges for the title insurance.4Office of the Law Revision Counsel. 12 USC 2608 – Title Companies; Liability of Seller A seller can still suggest a title company, and the parties can still agree on one; what the seller cannot do is make the sale contingent on a company they pick. If a seller insists on their preferred title company as a non-negotiable condition, raise it with your real estate attorney.
Confirming the Split on Your Closing Disclosure
Both premiums appear on the Closing Disclosure, the federally required document you receive before closing. The lender’s policy shows up in the Loan Costs section, and the amount listed is the full lender’s premium even when the simultaneous issue discount reduces what you actually pay. The owner’s policy appears in Other Costs, usually labeled something like “Title – Owner’s Title Policy (optional).” If the seller is paying for it, the “(optional)” label isn’t required.5Consumer Financial Protection Bureau. Factsheet: TRID Title Insurance Disclosures
When the simultaneous issue discount applies, the two line items can look confusing because the full lender’s premium sits on the lender’s line and the net discounted figure sits on the owner’s line. Compare the total of both lines against what the promulgated rate schedule produces, and confirm that whoever your contract says is paying is in fact being charged on the right side of the disclosure.