Title Insurance
Insurance that protects against title defects existing before the policy date, with separate owner and lender policies.
Title insurance protects against losses from defects in title that existed before the policy was issued, such as undisclosed liens, recording errors, or forged documents. An owner's policy protects the buyer up to the purchase price. A lender's policy protects the mortgage holder up to the loan amount.
A title search examines the public record, but some defects do not appear there. Title insurance covers those hidden risks. In Florida, the party who pays for the owner's policy varies by county custom.
On the exam
Exam trap
Tested in
Titles and Deeds (7% of the exam)
From definition to recall
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This definition is Florida real estate exam-prep education, not legal, tax, or professional advice. Verify current rules against the official source before relying on them for a real transaction. Back to the full glossary.