Florida is a title state and issues title for property ownership. Title insurance is an insurance policy which is purchased to protect the Owner should a claim on title (referred to as “a cloud”) be successfully made. The title insurance company will pay for an accepted claim up to the amount the title policy is issued for. Title insurance is not required by state law but is generally required by lending institutions (banks) if you get a mortgage. If you are not getting a loan or mortgage you will want to buy a policy to protect your investment.
"Title Insurance Policy- A contract of title insurance under which the insurer, in keeping with the terms of the policy, agrees to indemnify the insured against loss arising from claims against the insured interest."
(source: LandAmerica Financial Group, Inc)
Q: Who should get a Policy?
A: Anyone owning title to the property.
Q: How much coverage should be purchased?
A: An amount equal to your purchase price of your purchase and/or mortgage. Keep in mind if buy a lot first you may be buying the policy in the amount of the lot purchase only. Then when you build your house you will need to increase the policy (or buy another) in the amount of the lot and house value together. Your original lot policy will only pay out up to the lot purchased value, NOT the lot and house value.
Q: Who buys the Policy?