If your closing agent just emailed you a Title Commitment with two policy line items and you're trying to figure out why there are two, here's the short version. Every Florida purchase with a mortgage involves two separate title insurance policies — the owner's policy, which protects the buyer's equity, and the lender's policy, which protects the bank's mortgage interest. They are written by the same underwriters, issued at the same closing, and rely on the same title search — but they cover different parties, last for different periods, and are priced very differently. Understanding the split is the single best way for a Florida buyer to know what they are paying for and why.
This guide is a side-by-side comparison. We start with a comparison table, then walk through each policy individually, explain the simultaneous-issue discount strategy, and close with the Florida-specific custom for who pays what — including how that custom differs in Hollywood and Fort Lauderdale versus Orlando or Tampa.
Side-by-Side Comparison
| Feature | Owner's Policy | Lender's Policy |
|---|---|---|
| Who's protected | The buyer (and their heirs) | The bank / mortgage lender |
| What's protected | The buyer's full equity in the property | The lender's mortgage interest, up to the loan balance |
| Coverage amount | Equal to the purchase price | Equal to the loan amount |
| Does coverage decline? | No — stays at full purchase price | Yes — declines as the loan is paid down |
| How long it lasts | As long as buyer or heirs own the property | Until the loan is paid off or refinanced |
| Required? | Optional but strongly recommended | Required by every Florida lender when financing exists |
| Premium (Florida) | Promulgated tiered rate ($5.75 / $5.00 / $2.50 per $1,000) | Simultaneous-issue: $25 flat minimum |
| Who customarily pays | Seller in most FL counties; buyer in Miami-Dade, Broward, Sarasota, Collier | Buyer (always, when there is financing) |
| One-time premium | Yes — paid once at closing | Yes — paid once at closing |
| Survives refinance? | Yes — original policy stays in force | No — replaced by a new policy on the new loan |
The Owner's Policy in Detail
The owner's title insurance policy is the policy that protects you, the buyer. It is written with the buyer as the named insured, the purchase price as the coverage amount, and the date of closing as the effective date. From that moment forward, the policy stands behind the buyer's title against any defect that existed before closing but was not picked up in the title search.
The coverage amount does not decline. If a defect surfaces 15 years after closing — when the buyer has paid down the mortgage and built substantial equity — the policy still covers up to the original purchase price. If the property has appreciated in the meantime, some endorsements add inflation coverage on top, but the base policy is the purchase price.
The owner's policy is also the only Florida title policy that lasts past the loan. When the mortgage is paid off, the lender's policy ends. When the property is refinanced, the original lender's policy is replaced. But the owner's policy keeps running, defending the title for as long as the buyer or any heir holds an interest. There is no renewal premium, no annual cost, and no expiration.
What the Owner's Policy Covers
Standard Florida owner's policy coverage typically includes:
- Forged or fraudulent deeds in the chain of title
- Undisclosed or missing heirs from a prior probate
- Liens, judgments, and mortgages not in the public record
- Errors in the public record (incorrect names, missing pages, wrong legal descriptions)
- Defective recording (improper indexing, missing acknowledgments)
- Identity fraud and impersonation in prior conveyances
- Easements and rights of way not disclosed by the public record
- Legal cost to defend the title in court (in addition to the loss itself)
The Lender's Policy in Detail
The lender's title insurance policy is written with the mortgage lender as the named insured. Its coverage amount equals the outstanding loan balance and declines as the loan is paid down. Its purpose is narrow: protect the lender's collateral position by guaranteeing that the lien created by the mortgage attaches to a property with clean title and remains enforceable.
Every Florida residential lender — bank, credit union, mortgage broker, or non-bank lender — requires a lender's policy as a condition of funding. There is no negotiating it. The policy itself satisfies a baseline secondary-market requirement (Fannie Mae and Freddie Mac both mandate it) and protects the loan during any subsequent securitization or transfer.
The key thing for buyers to understand is that the lender's policy does not protect the buyer's equity at all. The named insured is the lender, the coverage runs to the lender's mortgage interest only, and any claim payment goes to the lender. If a title defect surfaces and forces a payout, the lender's policy makes the bank whole. The buyer, with no owner's policy, gets nothing.
This is the most common misunderstanding we see at the closing table. Buyers see the lender's policy on the Closing Disclosure, assume it protects them, and decline the owner's policy. Then if something later surfaces, the lender is reimbursed and the buyer is wiped out. The owner's policy is the only policy that protects the buyer.
Our take: the simultaneous-issue lender's discount is the single best deal in Florida real estate. Always take it. The premium drops from a four-figure standalone number to a flat $25 just for stacking it with the owner's policy at the same closing. We have not seen a financed Florida purchase in our office in the last 8-10 years where it didn't apply, and we cannot think of a scenario where waiving it makes sense.
The Simultaneous-Issue Discount Strategy
When the owner's policy and lender's policy are issued at the same closing on the same property, the lender's policy qualifies for a simultaneous-issue discount. Under Florida promulgated rates, the lender's policy is typically just a $25 flat minimum charge for loan amounts up to the owner's policy liability. If the loan amount exceeds the owner's coverage (very rare on a purchase, more common on a cash-out refinance), there is a small additional per-thousand premium on the excess.
The economic implication is striking: the marginal cost to go from "lender's policy only" to "owner's policy + lender's policy" is just the owner's premium itself. On a $400,000 Florida purchase that is $2,075 once. In exchange, the buyer gets a permanent personal title policy that stands behind their equity for the rest of their life.
A Concrete Example
A buyer purchases a $500,000 Florida home with a $400,000 mortgage. At closing:
- Owner's policy premium (promulgated): $2,575
- Lender's policy premium (simultaneous-issue): $25
- Total title insurance: $2,600
If the buyer had declined the owner's policy and only purchased the lender's policy, the lender's premium alone would have been higher (no simultaneous-issue discount applies when there is no owner's policy to attach it to). And the buyer would have walked away with zero personal title protection. The simultaneous-issue rule is designed specifically to nudge buyers toward both policies, and the math agrees with the policy.
How Long Each Policy Lasts
Duration is the most underappreciated difference between the two policies.
- Owner's policy: lasts as long as the buyer or any heir holds an interest in the property. No expiration, no renewal premium, no annual cost. If the property is held for 50 years and then inherited, the policy still defends the original title chain.
- Lender's policy: lasts only until the loan it secures is paid off or refinanced. When the buyer makes their final mortgage payment or refinances into a new loan, the original lender's policy ends and is replaced (in the case of refinance) by a new lender's policy on the new loan.
This is why refinancing produces a new lender's policy but never a new owner's policy. The original owner's policy continues to run — there is nothing to replace. The new lender's policy on the refinance is typically issued at the reissue or simultaneous-issue rate, which is much lower than the original promulgated rate.
Who Pays in Florida
Florida custom for who pays the owner's policy varies by county. In 63 of Florida's 67 counties — Palm Beach, Orange, Hillsborough, Pinellas, and most of the state — the seller customarily pays the owner's premium and selects the closing agent. In Miami-Dade, Broward, Sarasota, and Collier counties, the custom flips and the buyer typically pays. The lender's policy is always paid by the buyer when there is financing.
These customs are reflected as pre-checked defaults in the FAR/BAR Florida residential purchase contract, but they are not legally mandated — either party can negotiate to shift them. In tight inventory markets, buyers in Palm Beach County sometimes agree to absorb the owner's premium as a contract concession; in buyer's markets, sellers in Miami sometimes agree to cover the owner's policy to sweeten the deal. A common situation we see at our office: a buyer relocating from Broward to Palm Beach County (or the reverse) gets blindsided when the title insurance line shows up on the "wrong" side of the Closing Disclosure compared to their last transaction.
Regardless of who pays, the buyer is the named insured on the owner's policy and the only party protected by it. The seller paying does not change who the policy covers.
The Practical Recommendation
For nearly every Florida buyer, the right move is the same: order both the owner's policy and the lender's policy together at closing. The lender's policy is required anyway when there is financing. The owner's policy is the only protection for the buyer's equity. And the simultaneous-issue rule means the marginal cost of stacking them is just the owner's premium itself — no penalty for getting both. You can model your exact premiums with our Florida title insurance calculator, and the full Florida closing cost picture (including doc stamps, intangible tax, and recording fees) with our estimate tool.
Frequently Asked Questions
What is the difference between owner's and lender's title insurance in Florida?
The owner's policy protects the buyer's equity in the property for as long as the buyer or their heirs hold an interest. The lender's policy protects the bank's mortgage interest only and lasts only until the loan is paid off or refinanced. Both are typically issued at the same Florida closing, but they cover different parties and last for different periods.
Do I need both owner's and lender's title insurance?
If you are financing the purchase, the lender will require a lender's title insurance policy — this is not optional. The owner's policy is technically optional but strongly recommended because the lender's policy only protects the bank. When both are issued at the same closing, the lender's policy gets a simultaneous-issue discount and is typically just a $25 flat add-on.
My buyer's lender wants to pick the title company. Can I refuse as the seller?
It depends on the county. In 63 of Florida's 67 counties (everywhere except Miami-Dade, Broward, Sarasota, and Collier), the seller customarily pays for the owner's title insurance policy AND selects the closing agent — and Florida law generally lets you push back on a lender that tries to override that custom. In the four buyer-pays counties the buyer's lender often gets to choose. The FAR/BAR contract has pre-checked defaults; whoever pays for the policy gets to pick the agent, unless you negotiate otherwise in the agreement itself.
My closing agent quoted me $25 for the lender's policy. Is that a typo?
No — that is the simultaneous-issue minimum charge. When the owner's and lender's title insurance policies are both issued at the same closing, the lender's policy qualifies for a steep discount — typically a flat $25 minimum charge for loan amounts up to the owner's policy liability. This is the cheapest way to add lender's coverage and is why we always recommend buyers issue both policies together.
Does the lender's policy decline as I pay down my mortgage?
Yes. The lender's title insurance policy is tied to the outstanding loan balance, so its coverage amount decreases as the loan is paid down and ends entirely when the loan is paid off. The owner's policy, in contrast, covers the full original purchase price and does not decrease over time.
I'm refinancing — do I need a brand-new title insurance policy?
Your original owner's policy stays in force and continues to protect the buyer indefinitely. The original lender's policy ends when the original loan is paid off as part of the refinance. A new lender's title insurance policy is issued on the new loan at the simultaneous-issue or reissue rate, which is significantly cheaper than the original premium.
Order Both Policies at Closing
Statewide Florida coverage across all 67 counties. Underwriting through Old Republic, Stewart, Catic, and WFG. Both policies issued together at the simultaneous-issue rate.