Florida Mandates a Title Insurance Policy Surcharge
Have you noticed the $3.28 charge on your closing statements in the St. Augustine and Beach areas? Have you wondered what that new charge is? Every title insurance policy issued in Florida, after September 2, 2014, now has the added $3.28 charge. Even in St. Augustine.
What is the Assessment and Why is it Good?
A cheap way to make sure you are protected long-term. It’s like the FDIC for banks but this is to protect your title insurance from underwriter financial failure.
What are the Details?
The surcharge is mandated by Florida law. The Florida Office of Insurance Regulation, which regulates title insurance underwriters in Florida, is required to implement and enforce collection of the surcharge. These funds will be used for the payment of claims and administration expenses for two failed domestic underwriters that are currently in receivership, Nation Title Insurance Company and K.E.L. Title Insurance Group, Inc. Florida law provides that the surcharge must be passed on to and collected from consumers.
The surcharge is to make sure that if a title insurance underwriter fails, the insureds under their policies will still be protected. The other underwriters are required to work with each other and The Florida Office of Insurance Regulation to make sure that any claims made under those policies are paid or otherwise resolved.
What does this mean to you?
This means that your title insurance policy will always be there to protect you. Your policy should never become worthless. The St. Augustine and Beach area attorneys at St. Johns Law Group are here to answer any questions you may have regarding this new surcharge or any title related questions.