Understanding Texas Title Insurance
What Is Title Insurance and Why Do You Need It?
Title insurance is a form of indemnity insurance that protects real estate buyers and mortgage lenders
against financial losses arising from defects in a property's title. In Texas, title insurance is
regulated by the Texas Department of Insurance (TDI), which sets uniform premium
rates that every licensed title company in the state must charge.
Unlike other forms of insurance that protect against future events, title insurance protects against
past events — such as undisclosed liens, forged signatures in the chain of title, errors in public
records, unknown heirs, or boundary disputes — that may not surface until after the transaction closes.
A Texas owner's title insurance policy protects your ownership interest for as long as you or your
heirs hold title to the property, all for a single one-time premium paid at closing.
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Owner's Policy
Protects the homebuyer's ownership interest against title defects, liens, and disputes that existed before closing. Lasts as long as you own the property.
🏭
Lender's Policy
Protects the mortgage lender's interest in the property. Required by virtually all lenders as a condition of the loan. Covers the loan amount, not the property value.
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Simultaneous Issue
When both an owner's and lender's policy are issued at the same time, Texas allows a discounted rate. Ask your title company about simultaneous issue pricing.
How Texas Title Insurance Is Priced
Texas Title Insurance Rates: How They Are Determined
Texas is one of only a handful of states with state-regulated, fixed title insurance rates.
The Texas Department of Insurance publishes the official premium rate table, and all licensed Texas
title companies must charge the same rate for the same policy amount. You cannot negotiate a lower
premium — but you can choose your title company based on service, local expertise, and reputation.
The current rates became effective March 1, 2026. For policy amounts between $25,000
and $100,000, premiums are looked up directly from the TDI rate table. For amounts over $100,000,
TDI uses a four-step formula applied to one of seven rate tiers.
1
Identify the Tier
Find the rate tier in the TDI formula table that contains your policy's face value.
2
Subtract the Base
Subtract the tier's base value from your policy amount to isolate the excess amount.
3
Multiply & Round
Multiply the excess amount by the tier's rate factor and round to the nearest dollar.
4
Add Base Premium
Add the tier's base premium to the result. This is your basic title insurance premium.
2026 Rate Reference
Sample 2026 Texas Title Insurance Premiums
The table below shows a sample of basic premiums from the official 2026 TDI rate table for
common Texas residential transaction amounts. Use the calculator above for any amount from
$25,000 to $100 million and beyond.
| Policy Amount |
Basic Premium |
Policy Amount |
Basic Premium |
| $100,000 | $780 | $350,000 | $2,009 |
| $150,000 | $1,027 | $400,000 | $2,256 |
| $200,000 | $1,274 | $450,000 | $2,503 |
| $250,000 | $1,515 | $500,000 | $2,750 |
| $300,000 | $1,762 | $750,000 | $3,985 |
* Premiums for policies over $100,000 are calculated using the official TDI formula. Values shown are rounded to the nearest dollar.
Use the calculator above for precise figures.
Frequently Asked Questions
Texas Title Insurance FAQ
How much does title insurance cost in Texas?
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Texas title insurance premiums are set by the Texas Department of Insurance and are the same
regardless of which title company you use. As of March 1, 2026, premiums start at $308
for a $25,000 policy and $780 for a $100,000 policy. For policies over
$100,000, premiums are calculated using a tiered formula. Use our calculator above to get the
exact premium for any policy amount.
Are Texas title insurance rates the same at every title company?
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Yes. Texas is one of a small number of states where title insurance rates are regulated and
set by the state. The Texas Department of Insurance sets the premium rates, meaning every
licensed title company in Texas must charge the same basic premium for the same policy amount.
You cannot negotiate a lower rate, but you can — and should — choose your title company based
on service, experience, local knowledge, and reputation.
When did the current Texas title insurance rates go into effect?
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The current Texas title insurance rates became effective March 1, 2026, as
published by the Texas Department of Insurance. This calculator uses those rates exclusively.
Prior to March 1, 2026, the rates effective September 1, 2019 were in use.
What is the difference between an owner's policy and a lender's policy?
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An owner's title insurance policy protects the homebuyer against title defects,
liens, or ownership disputes that arise after closing. A lender's policy (also
called a mortgagee or loan policy) protects the mortgage lender's interest in the property. In a
standard Texas real estate transaction, both policies are typically issued simultaneously. When
issued at the same time, a premium discount called a simultaneous issue rate applies —
contact Texas Lone Star Title for details.
How is the premium calculated for policies over $100,000?
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For policies over $100,000, TDI uses a four-step formula across seven rate tiers.
Step 1: Identify the tier containing your policy amount.
Step 2: Subtract the tier's base value from your policy amount.
Step 3: Multiply the result by the tier's rate factor and round to the nearest dollar.
Step 4: Add the tier's base premium. Our calculator performs all four steps and shows the full breakdown.
Who pays for title insurance in Texas?
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In Texas, the custom varies by area. It is common for the seller to pay for
the owner's title insurance policy and the buyer to pay for the lender's policy.
However, this is negotiable and should be specified in the purchase contract. Your title company
can advise you on the local custom in your market.
Is this calculator accurate for my specific transaction?
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This calculator computes the basic title insurance premium using the official
2026 TDI rate table and formula. It does not account for endorsements, simultaneous issue
discounts, reissue credits, or other transaction-specific adjustments that may apply to your
closing. For a complete and accurate quote tailored to your transaction, contact
Texas Lone Star Title, LLC directly.