Calculating Title Insurance in Florida The State of Florida has a title insurance premium that is “promulgated,” which is a fancy way of saying that it is set by the state. However, that does not mean that you have to purchase title insurance. There are two policies, an owner’s policy, and a lender’s policy. If
Calculating Title Insurance in Florida
The State of Florida has a title insurance premium that is “promulgated,” which is a fancy way of saying that it is set by the state. However, that does not mean that you have to purchase title insurance. There are two policies, an owner’s policy, and a lender’s policy. If you are a cash buyer, you do not have to purchase title insurance , since you don’t have a lender that will require a lender’s policy, but you should strongly consider an owner’s policy anyways, in order to save yourself from issues that the previous owner may have had with the title – like debt.
To understand how much title insurance is in Florida with the promulgated formula, you can follow a general standard for calculating the baseline cost.
The cost of title insurance depends on the purchase price of the property. Generally, buyers pay on average two to five percent of the purchase price in title insurance. For purchase prices, up to $100,000, the Florida title insurance premium would be calculated at $5.75 per thousand dollars of the purchase price. So, a $100,000 would have a title insurance premium of $575. For homes with a purchase price over $100,000, the title insurance premium drops to $5.00 per thousand. So for a $300,000 home the title insurance premium would be $1,575.
However, what most title insurance companies in Florida will neglect to mention, is that Florida offers the Butler Rebate. Since most homeowners and buyers in Florida have little knowledge about the real estate closing process, what closing costs entail, and what title insurance entails, if you do not have a title insurance company that is honest and transparent with you, you likely will not get the Butler Rebate you deserve.
The Right to Negotiate Title Insurance
Florida buyers and sellers have the right to negotiate title insurance premium rates with their title insurance company. The Florida Butler rebate gives title insurance agents the option to offer the paying party rebates (or a credit when you close) on a percentage of the insurance premium.
When you’re in a situation where you are purchasing a home with a loan, the lender may require you to purchase a lender’s title insurance policy, on their behalf. Unfortunately, that is the way the industry works. When you are required to purchase this policy, TitleZoom only charges $125 for this policy and then will apply a Butler Rebate to this policy. So in essence, we are providing you the Butler Rebate on both policies when financing your home.