Skip to content
Fact Checked by Experts

Does Florida Law Require Title Insurance?

If you're looking to buy or sell property in Florida, you may wonder whether or not you need to purchase title insurance. Title insurance protects property owners from losses caused by defects in the ownership of property and losses arising from disputes over the interpretation of legal documents affecting the property.

But before deciding if it's worth paying extra to protect your investment, you should understand what Florida law requires when it comes to title insurance and the circumstances that make it necessary. Does Florida law need title insurance? How often is the insurance used? Do new homes in FL require coverage?

Here’s your answer to this common question about title insurance in the Sunshine State. Follow along as we delve into this topic further and learn about the answers to these frequently asked questions!

Florida Law Concerning Title Insurance

Buying a house without buying title insurance in Florida can be risky if you don't know what you're doing. It exposes you to the possibility of losing your money and the house outright due to missing or damaged property records that were never caught.

In Florida, title insurance is mandated. Both parties must have valid title insurance to transfer property from one party to another.

The Florida law requires all real estate transactions to have a title insurance policy (owner’s or lender’s coverage policy). This policy protects buyers and sellers against any claims made by third parties or other entities with interest in a piece of property. It guarantees that no legal rights have been violated when creating or transferring property ownership.

While the law requires title insurance, it doesn't mandate how much to purchase. As such, you must work with your attorney and title company to determine the right policy for your property.

Most new homebuyers would benefit from buying the owner's policy, which will safeguard them from any title problems during the presented period. At the same time, you can always continue purchasing policies as you move forward with your home buying process.

However, that doesn't mean all homeowners should spring for the added expense, as the requirements and benefits of title insurance vary significantly from one county to another. So be sure to weigh the costs and benefits before deciding whether or not it's right for you.

Happy black couple with house key and carton boxes smiling

How Often is Title Insurance Used?

Title insurance is often used to protect Florida homeowners when purchasing property or refinance their mortgages. If you want to sell your property in the future, you must ensure the property's title is free of all outstanding liens, rights, and encumbrances, otherwise known as defects in title, before selling.

The importance of title insurance isn't something that many people think about until they're faced with an issue, like claiming it. That's why it's essential to know what your policy covers and how often you should utilize it.

It would help if you also understood how pre-existing conditions could impact your policy or sought the advice of a reliable attorney who specializes in real estate law before purchasing your policy.

Title insurance coverage provides some much-needed peace of mind by guaranteeing that the policy's provisions will cover any defects found during the due diligence period. Below are common instances when you'll be required to use your title insurance policy in Florida:

  • Forgery, identity theft, and fraudulent signatures relating to your estate.

  • Errors and false record-keeping.

  • Conflicting property ownership claims.

  • Face undiscovered easements, among other defects that might reduce your property value or usefulness.

  • Fake ownership transfer/inheritance rights.

  • Boundary fences or other unauthorized buildings that extend to your property.

  • Arising rules or liens that weren’t mentioned before closing.

  • Any other title problem that existed before your policy began.

Does a New Home in FL Require Title Insurance?

Title insurance can protect the new homeowner from any number of unforeseen issues that can arise when purchasing a home, and all reputable real estate agents recommend it before closing on any property in Florida.

Not all properties come with good titles, but with the help of a title insurance company, you can check the property's history and ensure that it's free from any problems.

Many home buyers will shy away from buying title insurance when purchasing their new home in the Sunshine State. But is it indispensable to buy it? In some cases, it might be optional, but in most cases, it's not.

Without title insurance, you can never be sure that there aren't any liens or unpaid taxes on your property. When you go to refinance your mortgage or sell your home down the road, you could end up losing money because of these types of issues.


Florida law requires a title insurance policy to secure all real estate transactions. The amount of coverage you need in your particular situation depends on many factors, including whether you're buying or selling, the size of the property, and whether you're adding other people to the transaction.

So, it's vitally essential to understand what the law states about title insurance in Florida before purchasing your property coverage.

With over 50 years of mortgage industry experience, we are here to help you achieve the American dream of owning a home. We strive to provide the best education before, during, and after you buy a home. Our advice is based on experience with Phil Ganz and Team closing over One billion dollars and helping countless families.

Find The Right Mortgage

For more than 20 years, Phil have been helping customers achieve their home purchase and refinance goals by providing them with invaluable resources and support.

Schedule a FREE Consultation
Phil Ganz