Title insurance may not come immediately to mind when buying a house in Florida. However, it can save a buyer’s investment in the event that another party attempts to interfere with the selling process. There are two types of title insurance people should be aware of.

According to the Consumer Financial Protection Bureau, there is both lender’s and owner’s title insurance. Lender’s title insurance protects the monetary funds a lender provides to a buyer and is usually required by the lender before funds are provided. Owner’s title insurance protects a buyer’s financial investment in the piece of residential real estate from claims during and after the closing process if a third party tries to intervene. Usually, this arises from an undisclosed claim by a previous owner or a lien for unpaid contractor work.

Real estate laws and regulations can be confusing for individuals outside the industry. To mitigate this, the Florida Office of Insurance Regulation provides an educational guide to help people understand title insurance regulations. It details the process of transferring ownership from seller to buyer, including the parties responsible for this action, such as a title insurance agent or lawyer. This guide is updated to reflect the most recent changes to laws and regulations, making it easier for buyers to understand the process, terms and benefits of title insurance.

Which policy do people need for a secure closing transaction? The answer is that a person may want both. Title insurance, while not mandatory by state law, offers buyers and sellers protection for residential real estate and is regulated by the state. Understanding title insurance, in both its forms, provided homebuyers with a means of staying on track with the closing process and ownership of real estate.