You are excited to make an offer on a Miramar Beach condo or coastal home, but the paperwork around title insurance feels opaque. You want to protect your investment without overpaying or missing something critical at closing. In this guide, you will learn what title insurance actually covers in Florida, what it does not cover, how premiums work, and what local customs look like in Okaloosa and Walton counties. You will also get a clear checklist you can use before you write an offer. Let’s dive in.
Title insurance basics
Title insurance protects you from losses caused by past problems with a property’s title that were unknown at closing. It does not cover physical damage to the home. Instead, it focuses on defects that may be hidden in public records or missed during the title search.
Owner’s vs. lender’s policies
- Owner’s policy: Protects your ownership interest, usually up to the purchase price. You pay a one-time premium at closing, and coverage lasts as long as you own the property, and often protects certain heirs.
- Lender’s policy: Protects the lender’s mortgage lien up to the loan amount. If you finance your purchase, your lender will require this policy. It protects the lender, not your equity.
How it works at closing
Before closing, a title company issues a title commitment that outlines what it will insure and any exceptions. If a covered defect later surfaces, the title insurer may pay your legal defense and covered losses up to the policy limits. Forms and endorsements typically follow ALTA standards with Florida-specific options.
What it covers
An owner’s policy generally covers past defects that affect ownership and were not excluded in the policy. Common covered risks include:
- Forged or improperly executed deeds, mortgages, or releases in the chain of title.
- Unknown or missing heirs, or errors in marital status affecting past conveyances.
- Recording mistakes, misindexing, or fraud that clouds ownership.
- Issues with the validity, enforceability, or priority of recorded liens that were missed in the search.
A lender’s policy mirrors many of these protections but focuses on protecting the priority of the lender’s lien.
What it does not cover
Title insurance is not a blanket guarantee. Standard exclusions often include:
- Issues created after the policy date, including future easements or liens you agree to later.
- Rights of parties in possession that do not appear in public records, such as some tenant disputes.
- Zoning, building code, or covenant violations, unless specifically endorsed.
- Unrecorded contractor liens for work not yet recorded by closing, unless addressed by endorsement.
- Environmental contamination or physical conditions like wetlands concerns, unless specifically endorsed.
- Items listed as exceptions in the title commitment’s Schedule B.
- Coastal boundary changes due to erosion, accretion, or avulsion that affect shoreline lines.
Florida and coastal nuances to note
- Association liens: Florida condo and HOA laws allow associations to place liens for unpaid assessments. Many owner policies exclude future assessments unless you add an endorsement.
- Flood risk: Title insurance does not cover flood damage or FEMA flood zone designations. Plan to obtain separate flood insurance and review elevation certificates where required.
- Public trust and beachfront boundaries: On beachfront parcels, the mean high-water line and public rights to the foreshore can shift or limit private use. These issues are commonly excluded unless a specific endorsement is provided.
Useful endorsements
Endorsements add targeted protection and can reduce standard exceptions. In Florida, common options include:
- Survey or Boundary endorsement to insure against certain survey matters and boundary encroachments after you provide a current survey.
- Access and Zoning endorsements to confirm legal access and certain zoning assurances.
- Condominium or HOA Assessment endorsements to address assessment-related title risks.
- Environmental lien endorsements with limited protections where available.
- Mineral or mining rights endorsements if relevant.
- Enhanced owner’s coverage that narrows standard exceptions, subject to underwriting.
Your title company can advise which endorsements are typical for your property type, such as condominiums, single-family homes, or waterfront parcels.
Premiums and who pays
In Florida, title insurance premiums are regulated and follow state-filed rate schedules. You pay the premium once at closing, and the price scales with the amount insured. Endorsements add cost, and a reissue rate may be available if the property was recently insured under qualifying conditions.
There is no statewide law that dictates who must pay. Contracts and local customs drive the allocation. In many Florida markets, sellers often pay for the owner’s policy, while buyers typically pay for the lender’s policy when financing. That said, the split is negotiable and can vary by county, property type, and market conditions.
Okaloosa and Walton customs
In the Miramar Beach area, customs often align with the pattern of seller-paid owner’s policies, but second-home and vacation-market deals can differ. In competitive or investor-focused situations, buyers may be asked to cover more of the closing costs. The best approach is to request clarity in your contract and verify local practice with a title company or attorney before you submit an offer.
Ask a local title company to provide:
- A written estimate showing owner’s and lender’s premiums and typical escrow or settlement fees.
- Confirmation of local custom for your property type.
- A check on whether reissue rates may apply.
Miramar Beach checklist
Use this checklist to reduce surprises and secure the coverage you need for a coastal purchase:
- Request a preliminary title commitment with Schedules A, B, and C from a local title company.
- Obtain a written premium estimate for the owner’s and lender’s policies, plus likely endorsements.
- Order a current ALTA or boundary survey and an elevation certificate if the property is in a flood zone.
- For condos or HOA properties, request an estoppel letter, declarations, bylaws, budgets, and details on any pending or special assessments.
- Ask for evidence of recent title insurance on the property to see if reissue rates could apply.
- Search county records for special assessments, pending litigation, or easements that impact use.
- Confirm flood zone determinations and get flood insurance quotes separate from title insurance.
- Specify in the purchase contract who pays for the owner’s and lender’s policies based on local custom and your negotiating strategy.
Key terms made simple
- Title search: A review of deeds, liens, mortgages, and judgments in public records.
- Title commitment: A pre-closing document that outlines what the insurer will cover and lists exceptions and conditions.
- Owner’s policy: Insurance that protects your ownership interest up to the purchase price.
- Lender’s policy: Insurance that protects the lender’s mortgage lien up to the loan amount.
- Endorsement: An add-on that expands coverage for specific risks, such as survey or HOA assessments.
- Exception: An item not covered by the policy, often shown on Schedule B.
- Reissue rate: A reduced premium when a qualifying policy exists within a set time frame.
- Easement: A recorded right allowing another party to use part of your property.
- Chain of title: The historical record of ownership transfers.
- Estoppel letter: A statement from the association with dues, assessments, and account status.
- Escrow or settlement agent: The title company, attorney, or agent who manages the closing and funds.
- ALTA: The American Land Title Association, which provides standard forms and endorsements.
Next steps before you offer
- Add a contingency that the seller provides a preliminary title commitment within a specific number of days.
- Contact one or two local title companies in Okaloosa or Walton for sample commitments, a premium estimate for owner and lender policies, and a summary of local payment customs.
- Budget for endorsements you will likely need, including survey, access, and HOA or condo assessments.
- Confirm how closing costs and title premiums are split in your contract so there are no last-minute surprises.
Buying a second home should feel exciting, not uncertain. With a clear title strategy, you can protect your equity and streamline your closing in Miramar Beach and the surrounding Emerald Coast. If you want local guidance tailored to your goals, connect with Howard B Dolgoff for a concierge conversation about your next steps.
FAQs
Do I need an owner’s policy if I have a lender’s policy?
- Yes. The lender’s policy protects the lender’s lien, while the owner’s policy is the only coverage that protects your equity against covered title defects.
Who typically pays for the owner’s policy in Miramar Beach closings?
- Customs vary. Many Florida deals have the seller pay the owner’s policy, but second-home markets often deviate, so confirm with a local title company and state it in your contract.
Does title insurance cover flood damage or coastal erosion on the Emerald Coast?
- No. Title insurance does not cover physical flood damage or erosion. Obtain separate flood insurance and review elevation certificates and FEMA flood zone data.
Can a title insurer remove all exceptions from the policy?
- No. Title companies may clear some items before closing, but laws, zoning, rights of parties in possession, and certain future assessments typically remain unless specifically endorsed.
How are title insurance premiums set in Florida?
- Premiums are regulated, charged once at closing, and based on the insured amount, with added cost for endorsements and possible reductions through reissue rates when applicable.
