Buying in West Palm Beach and keep hearing about title insurance? You are not alone. It is one of the most misunderstood parts of a Florida closing, yet it protects some of your most important rights as a homeowner. In this guide, you will learn what title insurance is, what it covers, what it does not cover, who typically pays in Palm Beach County, and how to navigate common local issues with confidence. Let’s dive in.
Title insurance in plain English
Title insurance protects you against covered defects in the property’s ownership history that existed before closing. It is different from homeowners insurance, which deals with future events like fire or storm damage. Title insurance defends your ownership rights and pays valid losses for covered claims up to the policy amount.
There are two common policies. An owner’s policy protects your ownership interest, usually up to the purchase price. A lender’s policy protects your lender’s lien position up to the loan amount and is typically required when you have a mortgage.
How and when you buy it
You pay a one-time premium at closing. The owner’s policy usually lasts as long as you own the property, and coverage can continue for your heirs while they hold title. The lender’s policy lasts while the loan is in place.
Before closing, the title company completes a title search and issues a title commitment. This preliminary report lists exceptions and any curative steps needed, such as paying off liens or obtaining missing releases, so issues can be cleared before you sign.
What it commonly covers
Title insurance policies are designed to address past defects tied to the recorded chain of title. Common coverages include:
- Forged signatures, improper recordings, or clerical errors in public records that affect title
- Unknown heirs or missing required consents that impact a prior transfer
- Previously undisclosed liens or encumbrances, subject to policy terms
- Errors in legal descriptions arising from public record mistakes
- Legal defense for covered claims, up to policy limits
What it usually does not cover
Just as important, there are exclusions you should understand. Standard policies do not typically cover:
- Matters recorded after the policy date, which are post-closing events
- Rights or claims of parties in possession, unless specifically endorsed
- Zoning or building code violations, or future eminent domain actions
- Unrecorded easements or rights that do not show in public records, unless endorsed
- Issues you create or agree to after closing
Endorsements that add protection
Endorsements are add-ons that can tailor coverage to the property and your lender’s needs. In Palm Beach County, you may see:
- Survey-related endorsements to insure over matters a certified survey reveals
- Access or right-of-way endorsements that confirm legal vehicular or pedestrian access
- Florida homestead and survivorship confirmations that address state-specific concerns
- Gap or interim coverage that protects during the gap between search date and recording
- Lender-required endorsements, such as those addressing mortgage priority or environmental liens
For waterfront or irregular-lot properties, survey matters are often excluded unless you obtain a survey endorsement. Many buyers request a new survey or updated sketch when purchasing near water or on unique parcels.
Who chooses and who pays locally
In Florida, title companies commonly handle the title search, commitment, closing documents, and the closing itself. Attorneys may be involved for added review or complex matters.
Contract language controls who chooses the title company and who pays for which policy. Customs vary across South Florida. Often, the buyer pays for the lender’s policy when there is a mortgage. Payment for the owner’s policy is negotiable and may be paid by the buyer or the seller depending on the contract and local practice. Always follow what your purchase contract says.
How local records and taxes fit in
Official records for deeds, mortgages, and liens are recorded with the Palm Beach County Clerk and Comptroller’s Official Records. Title searches rely on these county records and, when needed, certain state records. Tax parcel data, homestead exemptions, and tax certificates are tracked by county property appraisal and tax offices. Your title company will use these sources when preparing your title commitment and settlement figures.
Common Palm Beach County title issues
Owning in Palm Beach County can come with unique title considerations. Here are issues to watch and ask about early:
- Coastal and waterfront items: riparian rights, mean high-water line, seawalls, and potential accretion or erosion questions that can affect use
- Flood-risk context and FEMA mapping: flood zones and elevation certificates affect insurance and planning, but are not title defects
- Unreleased or junior liens: unpaid municipal liens, contractor or mechanic’s liens, and HOA or condo assessment liens
- Florida homestead and marital status: required spousal joinders can affect conveyances, and missing signatures can complicate closing
- Probate or unknown heirs: estates, trusts, or deceased owners may require probate actions or affidavits to clear title
- Fraud risks: forged deeds and identity theft have occurred; title companies use safeguards and gap coverage to reduce exposure
- Open permits and code enforcement: local building records may show open permits or violations that need attention before closing
- Septic and well records in unsewered areas: certain properties may require additional certifications
Wire fraud safeguards
Real estate wire fraud is a known risk. Take simple steps to protect your funds:
- Independently verify wiring instructions by calling a verified phone number for the title company
- Do not rely solely on email for wiring details
- Ask about secure portals, verification calls, and multi-factor identity controls
If anything looks off, pause and confirm before you send funds.
Recording gap and interim coverage
There is often a short gap between the date of the title search and the moment your deed and mortgage are recorded. During that time, new items could potentially appear in the records. Gap coverage, sometimes included or offered as an endorsement, helps protect against certain intervening claims. Ask your title company if gap or interim coverage is included and what it costs.
A simple closing checklist
Use this quick list to stay organized:
- Review the title commitment and listed exceptions as soon as you receive it
- Ask for a written estimate of closing costs, including owner’s and lender’s title premiums and any endorsements
- Confirm who pays for the owner’s policy and who selects the title company per your contract
- Ask if gap coverage is included or recommended
- Order a survey or survey endorsement for waterfront, irregular, or access-sensitive properties
- Verify homestead, probate, and HOA items early to avoid delays
- Call to verify wire instructions using a trusted phone number before sending funds
- Keep copies of your recorded deed, mortgage, and final policy after closing
Smart questions to ask
Bring these to your title company or attorney:
- What does the owner’s policy cover for this property, and what are the standard exceptions?
- Which endorsements do you recommend here, such as survey or access, and why?
- Who pays for the owner’s and lender’s title policies under our contract?
- How far back will the title search go, and what is the root of title you will examine?
- Are there outstanding liens, judgments, tax certificates, or permits that need clearing, and who will handle curative work?
- Do you include gap coverage between the commitment date and recording, and what is the cost?
- What anti-fraud controls do you use for wiring and identity verification?
- How are premiums calculated, and can I get a written estimate now?
If a claim arises after closing
If a title problem appears after you close, notify your title insurer promptly and provide any requested documents. The insurer will investigate and, if the matter is covered, will defend you and pay valid losses up to the policy limit. Keep copies of communications and recorded documents. If you disagree with a denial, request the decision in writing and consider next steps under the policy, including consulting an attorney.
Final thoughts for Palm Beach County buyers and sellers
Title insurance is a small part of your closing that protects a very big asset. In West Palm Beach and across Palm Beach County, the details that matter most are in your title commitment, the endorsements you select, and the terms of your contract. With the right questions and a trusted advisor, you can close with clarity and confidence.
If you want calm, concierge guidance tailored to Palm Beach County, connect with Renee Hasak PA for a clear plan from contract to closing.
FAQs
What is title insurance for a Palm Beach County home purchase?
- Title insurance protects you against covered defects in ownership that existed before closing, and it pays for legal defense and valid losses up to the policy limit.
Do I need an owner’s policy if I pay cash in West Palm Beach?
- A lender’s policy is only required with a mortgage, but many cash buyers still purchase an owner’s policy for protection against hidden title defects.
Who usually pays for title insurance in Palm Beach County?
- The buyer often pays for the lender’s policy when there is a loan; payment for the owner’s policy is negotiable and set by the purchase contract and local practice.
What endorsements are common for waterfront homes?
- Buyers often consider survey and access endorsements; for coastal properties, endorsements tailored to access or survey matters can help address unique site conditions.
How long does an owner’s title policy last in Florida?
- It typically remains in force as long as you own the property, and coverage can continue for your heirs while they hold title.
What does title insurance not cover at closing?
- Standard policies do not cover post-closing events, zoning or code violations, unrecorded rights without endorsement, or issues you create after you buy.
What is gap coverage in a Palm Beach County closing?
- Gap or interim coverage protects you during the period between the title search date and the recording of your deed and mortgage, reducing risk from intervening claims.
