Do I need title insurance to buy property in Miami?

Title insurance is the unfamiliar product most international buyers wish they understood sooner. It protects against losses arising from defects in the title that existed BEFORE you bought, and unlike most insurance, you pay one premium at closing and the policy lasts forever.

What it covers

• Forged prior deeds in the chain of title.
• Undisclosed liens (tax, mechanic's, judgment).
• Boundary disputes with adjacent owners.
• Errors in public records (mis-spelled names, wrong legal descriptions).
• Heirs of prior owners making claims (very common in Florida).

Owner's vs lender's policy

1. Owner's title insurance, protects YOU. Premium ~0.5% of purchase price. ONE-TIME cost. Lasts as long as you own.
2. Lender's title insurance, protects the bank. Required if you have a mortgage. Smaller premium (lasts only until mortgage is paid).
3. Cash buyers, owner's policy is optional but you'd be foolish to skip it. The single biggest dollar-for-dollar protection in real estate.

Florida-specific risks

• Florida's homestead laws can complicate inheritance, surviving spouses sometimes claim against pre-marital titles.
• Hurricane-related lien fraud spikes after major storms (contractors filing erroneous mechanic's liens).
• Wire fraud at closing is a Florida hotspot, verify wire instructions BY PHONE to a known number, never reply to emailed wire instructions.

“Title insurance is the only insurance product where you literally cannot file a claim while you own the property, because it only pays when the issue exists BEFORE you bought. Most buyers never need it. The ones who do, need it absolutely.”