Can You Close on Your Florida Home If Insurance Companies Keep Denying Coverage?

December 21, 2025

When we talk of Florida real estate, insurance is one of those steps that you can't afford to overlook. Securing the perfect home in the sunshine state can be a challenge, which is why no one wants all that effort to go to waste because they didn't have the right protection in place. Homeowners and title insurance are made to help you avoid the worst-case scenario if something happens, which is why most buyers don't need to be told about the importance of title insurance when they embark on a property purchase.

Of course, you may feel uncertain if the insurance company doesn't grant you coverage within the afforded timeframe of the closing process, and this is where the support of a title and escrow expert can help you navigate a stressful situation.

The Value of the Right Insurance Coverage

First, let's outline all the policies that could come into play during the real estate negotiations.

Homeowners insurance protects against financial losses incurred from destructive events or other catastrophic damage. Certain policies may also cover furniture, personal assets, and the homeowner's liability, while others might limit their coverage to specific incidents or events.

Meanwhile, title insurance is the natural step to take once you've completed other stages of the escrow process, like title searches and the review of property records. It's all part of a process that's meant to protect your investment and peace of mind, with title insurance extending that protection to your new life after the closing.

One of the biggest perks of title insurance is this: if you go for a premium plan, one single payment affords you comprehensive title protection as long as you or your heirs maintain ownership of the property. This protection works against:

• Errors in the property records that could result in changes regarding ownership rights.


• Forged documents or signatures, identity theft, or another fraudulent activity that could invalidate the property transfer during closing.


• Unpaid debt or liens from previous owners. These liens could be from contractor fees, missed mortgages, property taxes, or other pending payments.


• Encroachment issues involving a portion of the property or its entire location.

Because its protection extends to the lender's investment, title insurance can also be known as lender's insurance. Even if you don't depend on a lender, title insurance is a no-brainer in most real estate transactions because of the reasons outlined above. While title searches can do a lot for your peace of mind during the escrow process, the protection of title insurance can help you protect your life savings in the future.

Can You Be Denied Coverage?

Yes, the company can deny you coverage after evaluating your claim. The reason can be linked to external factors like whether the property's territory involves major environmental risks, or structural issues that have sat unaddressed for too long.

Other factors could relate to the client's credit history. If you have bad credit or if you have a history of unpaid debts.

Can You Close on Your Florida Home If Insurance Companies Keep Denying Coverage?

Typically, no. You can't close on a Florida home without having defined your insurance coverage. Given that neither homeowner nor title insurance is mandatory in most real estate transactions, you might be wondering why this is. The main reason is that proof of insurance is one of the main requirements from lenders. The lack of a proper policy entails more risks to the lender's investment since any legal conflict regarding property claims could result in heavy financial loss.

Some exceptions can be made, like cases where buyers make their closing payments in cash, but these are rare as digital payment technologies become the norm. As explained in an article from American Family Insurance, if you're not buying a home with cash, your lender will require you to pay the premium for one year's worth of homeowners insurance prior to or at closing.

We Can Help You Secure the Best Insurance Coverage

The professional team at Key Title & Escrow has earned the trust of clients from all walks of life because we provide timely assistance to all your real estate needs. Whether you want to protect your investment before buying a new home or save yourself some stress during a property sale, we can assist you every step of the way. While other companies limit their services to some parts of the escrow process, we can help you navigate all the requirements attached to title and escrow. These services include helping you secure the most convenient insurance policies according to your budget so you can always protect your home and hard-earned savings.

Contact us today and ensure a smooth transaction from the start. You can call (305) 235-4571 or toll-free at (800) 547-0006 to learn more straight from our title and escrow specialists. Also, feel free to send us a message via the website's contact form; we're ready to answer all your questions!