When you're buying your first Florida home, it's common for your realtor, lender, closing attorney, title company and others to recommend purchasing title insurance. Some of them might require that you buy it. There are various reasons why these parties may recommend that you buy title insurance.
As you're likely aware, every transaction including the purchase and sale of a home, levies, liens, easements and other property-related matters are all recorded with the Florida county in which the property is located. It's the responsibility of the Hollywood title company or attorney handling your purchase transaction to search those county records to identify any ownership concerns with the property.
It's only if either one of these parties determines that there aren't any ownership issues with the property that an underwriter will feel confident in insuring the title.
One of the reasons why you need to have title insurance is to protect you if you discover problems with property ownership rights down the line. There are many instances in which heirs may go undisclosed and forgery or filing errors may occur. This may result in certain problems not being noted. These can cause issues for the new homeowner when they attempt to sell their property later on.
You should know that when you purchase title insurance, it protects you from ownership issues for as long as you own your Hollywood home. Many lenders will require that you, as a homeowner, show proof that you have title insurance for as long as they're financing your mortgage.
There's a lot that goes into the home buying process. It can be quite daunting if you haven't been through it before. Your lender and others may attempt to push services on you that aren't required yet are simply nice to have. An attorney can help you sort through all of this. Your lawyer can provide sound advice as to why you may want to purchase title insurance and also what a certified title can do for you when you sit down to consult with them.