How can I get a discount off my title insurance in Florida?

How to get a discount on an owner's title insurance policy in Florida.

Title insurance rates in Florida are promulgated by the state.  This means that the rate for title insurance is standardized.  For example, according to the state’s regulations the cost of title insurance is $5.75 per $1,000 of the amount of the insured amount from $1 to $100,000. Fortunately for consumers, title insurers and state regulators have created ways to earn discounts off the promulgated rates.

Reissue Rate a.k.a. "Reissue Credit"

The most common title insurance discount is found in what the Florida Administrative Code calls the Reissue Rate. You may also hear it referred to as Reissue Credit.  Reissue rate can result in a rather substantial discount for purchasers of title insurance.  But before we get to the amount of the discount, let’s discuss what is required to qualify for it.

Present Your Owner's Title Policy for a Discount

The primary requirement is the existence and presentation of a previously issued owner’s policy of title insurance that insures the current owner of the property (this could be the seller in a purchase transaction or the owner in a refinance transaction).  In industry parlance, this is called the “prior policy.” The current owner must be able to present a copy of their prior policy to us prior to closing in order to qualify for the credit. For most homeowners, their prior policy would have been issued by the title insurance company that insured their purchase of the subject property.

For a purchase transaction the prior policy must be less than three years old. In other words, the reissue rate would not apply if a homeowner sold their home 4 years ago (assuming of course that the only prior policy was issued upon purchase).  There is no such age limit in a refinance transaction.  Reissue rate applies in these transactions whether the prior policy is 1 year old or 10.

So just what kind of a discount should one expect from the reissue rate?  Let’s look at the rates as prescribed in the Florida Administrative Code:

Discount on Owner's Title Insurance Policy
Amount of InsuranceOriginal Title Insurance Rates (per Thousand)Reissue Rates (per Thousand)
$0 to $100,000$5.75 $3.30
$100,000 to $1,000,000$5.00 $3.00
$1,000,001 to $5,000,000$2.50 $2.00
$5,000,001 to $10,000,000$2.25 $2.00
Over $10,000,000$2.00 $1.50

The reissue rates on the right-hand column of the table apply to the portion of the new insurance amount that is equal to the amount of insurance under the prior policy.  Let’s clarify with an example.  Say you purchased a property in 2011 for $100,000 and received an owner’s policy of title insurance for that same amount.  In 2013, you decide to sell the property for $145,000 and are able to provide a copy of your prior policy to Winged Foot Title prior to closing.  The original title insurance rate (without the reissue rate) for $145,000 is, according to the center column above, $800.  With reissue rate, the actual title insurance rate in your transaction would instead be $555.  That is a savings of $245 or 30.625% from the original rate.

Reissue rate is a great way to save money when purchasing title insurance.  If you would like to know if a transaction qualifies for reissue rate and how much of a credit is available, call us today at (239) 985-4142 or submit a quote request online.

Call 239.985.4142 or contact us for a FREE Title Insurance Request today!

Serving Fort Myers, Cape Coral and Naples, Florida.

Winged Foot Tite, LLC is not associated with the government, and our [short sale orchestration] service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan.