Overview of Florida Title Agency Bond Requirements
When you apply for a title insurance agency license in Florida, you will need to post a $35,000 title agency bond to the Division of Insurance Agent and Agency Services.
Why do I need this bond?
You need to post a bond as a guarantee that you will comply with the responsibilities of title agency licensees as defined in the Florida Statutes.
If you commit a violation of the Statutes which causes losses to a title insurer, an action can be brought against your bond by the insurer to secure compensation.
When a claim is filed against your bond, your surety must determine the appropriate amount of compensation to extend to claimants. Depending on the amount of damages suffered, claimants may be entitled to compensation for as much as the full penal sum of the bond.
If you'd like to know more about the function of bonds and how they work, see our detailed ‘What is a surety bond' guide!
See the sections below to learn more about the cost of this bond, the bond claims process, and how to get a free quote and get bonded!
If you'd rather speak to someone personally about applying for this bond, call us at 866.450.3412 to get in touch with one of our professionals!
What's The Cost of The Florida Title Agency Bond?
The cost of your bond is equal to a fraction of its full amount. How much exactly you need to pay to get bonded will depend on a number of financial indicators which your surety will assess.
Factors that determine your bond premium
Personal credit score is the most important factor that influences your bond rate - the higher your score, the cheaper it is to get bonded.
Bond rates can be separated into two major groups. Applicants with a score that ranges from excellent to good or average are typically offered a rate between 0.75% and 5% of the amount of their bond. Applicants with low and bad scores are bonded at rates upward of 5% and up to 15% of the bond amount.
While credit score is important, sureties typically also review applicants':
- Personal and business financial statements
- Fixed and liquid assets
- Work experience and record
See the table below to get a sense of how much your bond might cost, based on your credit score!
|Florida Title Agency Bond Cost Based on Credit Score|
|Above 700||650-699||600-649||Below 599|
|Florida title agency||$35,000||$262-$525||$350-$875||$875-$1,750||$1,750-$2,625|
What Causes Bond Claims?
Florida Statutes 626.8419 states that applicants for a title agency license must get a $35,000 bond.
The bond is intended to be for “the benefit of any appointing title insurer damaged by a violation by the title insurance agency of its contract with the appointing title insurer."
In other words, if a licensed agency violates its contract with an insurer, causing losses, the latter may file a claim against the surety bond. The point of the claim is to secure compensation to cover such losses.
Usually, the surety that backs the bond will then investigate the claim to determine the amount of compensation owed to the claimant.
If the surety compensates claimants, then the title agency is required to repay the surety in full. This is a standard part of every surety condition that guarantees that the surety is not held liable for damages caused by the bonded party.
For this reason, the better course of action is to always comply with the conditions of your bond agreement, so as to avoid giving rise to a claim.
How Do I Apply For a Bond?
To get started with your application, click on the banner below and complete the bond form. You will then receive a free quote on your bond, along with full details on finalizing the process.
If you have any additional questions about the bond required of Florida title agencies, call us at 866.450.3412!