Title insurance continues to be difficult subject in Florida
Title insurance in Florida has long been a tricky business. The state is considered a high risk market due to its exposure to hurricanes and tropical storms coming through the Gulf of Mexico. As such, the title insurance maerket in Florida can be difficult to navigate for some consumers more than in other states. This often creates problems for consumers, but there may be some relief in sight as the Florida Office of Insurance Regulations approves new measures to ensure the accessibility of affordable insurance coverage.
Regulators approve new title insurance option
Florida Insurance Commissioner Kevin McCarty announced this week that regulators had approved a new title insurance product that is meant to help cut costs for homeowners conducting mortgage modifications. McCarty notes that the product is meant to help both consumers and businesses and may be an effective way for lenders and homeowners to work together on loan modifications without incurring significant financial setbacks.
Mortgage Priority Guarantee policies now available in Florida
The insurance product is called a Mortgage Priority Guarantee policy and is designed to account for the economic trends that have emerged in Florida over recent years. With mortgage defaults reaching record highs in the wake of the 2008 financial crisis, lenders in the state have been looking for ways to work with homeowners in order to avoid financial loss. A Mortgage Priority Guarantee policy can help protect a mortgage lien’s priority. Typically, title insurance costs approximately $3.65 per every $1,000 in a property’s value, but can be paid as a one-time premium. Some insurance groups offer flat rates for their title insurance policies.
Florida insurance regulators have approved three insurance companies to sell this form of title insurance coverage. These companies are Old Republic National Title Insurance Company, Westcor Land Title Insurance Company, and WFG National Title Insurance Company. In the future, other insurers may be approved to sell Mortgage Priority Guarantee policies in the state.