Calculate Promulgated Owner's Policy Premiums per FL Statute 627.7825
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Base Promulgated Premium:$0.00
*This calculation represents the standard Owner's Policy premium based on the Florida Promulgated Rate. It does not include endorsements, settlement fees, or search fees.
function calculatePremium() {
// Get input value
var price = parseFloat(document.getElementById('propertyValue').value);
var resultDiv = document.getElementById('resultsDisplay');
var premiumSpan = document.getElementById('basePremiumOutput');
// Validation
if (isNaN(price) || price <= 0) {
alert("Please enter a valid property value greater than 0.");
resultDiv.style.display = "none";
return;
}
var premium = 0;
// Florida Promulgated Rate Calculation Logic (FL Statute 627.7825)
// Tier 1: Up to $100,000 = $5.75 per $1,000
if (price <= 100000) {
premium = (price / 1000) * 5.75;
} else {
premium += 575; // Full cost of first $100k
var remaining = price – 100000;
// Tier 2: Over $100,000 up to $1 Million = $5.00 per $1,000
if (remaining <= 900000) {
premium += (remaining / 1000) * 5.00;
} else {
premium += 4500; // Full cost of next $900k ($5 * 900)
remaining -= 900000;
// Tier 3: Over $1 Million up to $5 Million = $2.50 per $1,000
if (remaining <= 4000000) {
premium += (remaining / 1000) * 2.50;
} else {
premium += 10000; // Full cost of next $4M ($2.5 * 4000)
remaining -= 4000000;
// Tier 4: Over $5 Million up to $10 Million = $2.25 per $1,000
if (remaining <= 5000000) {
premium += (remaining / 1000) * 2.25;
} else {
premium += 11250; // Full cost of next $5M ($2.25 * 5000)
remaining -= 5000000;
// Tier 5: Over $10 Million = $2.00 per $1,000
premium += (remaining / 1000) * 2.00;
}
}
}
}
// Minimum premium is typically $100 in Florida
if (premium < 100) {
premium = 100;
}
// Formatting currency
var formatter = new Intl.NumberFormat('en-US', {
style: 'currency',
currency: 'USD',
minimumFractionDigits: 2
});
premiumSpan.innerHTML = formatter.format(premium);
resultDiv.style.display = "block";
}
Understanding Florida's Promulgated Title Insurance Rates
Unlike many other states where insurance premiums are determined by competitive market pricing, Florida is a "promulgated rate" state. This means that the base premium for title insurance is set by Florida law (Florida Statute 627.7825). Whether you choose a large national underwriter or a local boutique title agency, the cost for the actual Owner's Title Insurance Policy premium remains identical based on the purchase price of the property.
The Rate Formula
The cost of title insurance in Florida is calculated using a tiered system based on the property's value (or the liability amount of the policy). As the property value increases, the rate per thousand dollars decreases. The specific brackets are defined as follows:
Up to $100,000: $5.75 per $1,000 of liability.
Over $100,000 to $1 Million: $5.00 per $1,000.
Over $1 Million to $5 Million: $2.50 per $1,000.
Over $5 Million to $10 Million: $2.25 per $1,000.
Over $10 Million: $2.00 per $1,000.
Example: For a home purchased at $300,000, the first $100,000 is calculated at $5.75/$1,000 (totaling $575), and the remaining $200,000 is calculated at $5.00/$1,000 (totaling $1,000). The total base premium would be $1,575.
Who Pays for Title Insurance in Florida?
While the rate is set by law, the party responsible for paying the premium is negotiable and varies by county convention in Florida:
Miami-Dade and Broward Counties: It is customary for the Buyer to pay for the Owner's Policy.
Palm Beach County: The seller typically pays the premium.
Orange and Hillsborough Counties: The seller usually pays, but this can vary based on the specific terms of the contract.
Reissue Rates
If the property being sold has an existing owner's title insurance policy that is less than three years old (typically occurring during a refinance or a quick resale), you may qualify for a "Reissue Rate." The reissue rate is significantly lower than the standard promulgated rate. However, the standard calculator above assumes a new purchase without a prior policy credit.
Additional Costs
It is important to note that the "Promulgated Rate" applies only to the insurance premium itself. A title quote will often include other fees that are not regulated by the state in the same way, such as:
Settlement/Closing Fee: The fee paid to the title company for handling the paperwork and escrow.
Title Search Fee: The cost to research the public records.
Endorsements: Specific add-ons to the policy coverage required by lenders or requested by buyers.
Use the calculator above to determine your base liability cost for financial planning during your real estate transaction.