Texas

Title insurance in Texas: rates, policies and who pays

Texas sets one title premium for every company: $1,768 at $300,000 and $2,262 at $400,000 under TDI rates effective March 1, 2026.

Checked on against the official sources listed at the bottom of the page.

In short

In Texas, the Commissioner of Insurance sets title insurance premiums, and every title company must charge the same rate (Insurance Code § 2703.151). Under the Texas Department of Insurance (TDI) rates effective March 1, 2026, an owner’s policy costs $1,768 at $300,000 and $2,262 at $400,000. A lender’s policy issued at the same time costs $100 (Rate Rule R-5).

Who sets the rate?

Texas Insurance Code § 2703.151 requires the Commissioner of Insurance to “fix and promulgate” the premium rates that title insurance companies and agents charge. No one may charge a different rate. Under § 2703.152, the rates must be “reasonable as to the public” and “nonconfiscatory” to the industry, based on the industry’s income and expenses in Texas.

In practice, TDI collects financial data from the title industry, publishes a rate report and holds a public hearing. The latest round ended with Commissioner’s Order No. 2025-9697, signed December 19, 2025. It cut basic premium rates by 6.2%, effective March 1, 2026. Until that date, the 2019 rate chart applied.

TDI states the consequence plainly in its FAQ: title companies charge the same premium for a policy, and you cannot get a discount on it. For background on how title insurance works in any state, see title insurance explained.

How the premium is calculated

The premium depends on the policy amount. For an owner’s policy, that is normally the sales price; the TREC resale contract calls for an owner’s policy “in the amount of the Sales Price.”

  • Up to $100,000: read the premium from TDI’s chart, in $500 steps. For example, $50,000 costs $465 and $100,000 costs $780.
  • From $100,001 to $1,000,000: subtract $100,000, multiply by 0.00494, round to the nearest dollar, then add $780.
  • Higher bands use other multipliers; for example, $1,000,001 to $5,000,000 uses 0.00406 plus $5,226.

The basic premium covers more than insurance. Rate Rule R-1 says it includes the charge for title insurance, title examination and closing the transaction. Charges such as escrow fees, tax certificates, recording and delivery are separate. TDI notes that these differ between title agents and are worth reviewing.

What it costs

Owner’s policy premiums under the chart effective March 1, 2026, calculated with TDI’s formula:

Policy amountCalculationOwner’s policy premium
$100,000From the chart$780
$200,000$100,000 × 0.00494 + $780$1,274
$300,000$200,000 × 0.00494 + $780$1,768
$400,000$300,000 × 0.00494 + $780$2,262
$500,000$400,000 × 0.00494 + $780$2,756

Example at $400,000 in Dallas. A buyer pays $400,000 for a house in Dallas with a $320,000 mortgage, and both policies are issued at closing. The owner’s policy costs $2,262. The lender’s policy costs $100, because the loan does not exceed the owner’s policy amount (Rate Rule R-5). Endorsements the lender requires are priced under other TDI rate rules and come on top. The same prices apply in Houston, Austin or San Antonio, because the rate is statewide. Our Texas closing costs page puts these lines next to the other closing costs.

Optional survey coverage. The standard owner’s policy excludes discrepancies in area or boundary lines. The TREC contract lets the parties have that exception amended to read “shortages in area.” Rate Rule R-16 prices this at 5% of the basic premium on residential property, with a $20 minimum: about $88 at $300,000 and $113 at $400,000. The same amendment in a loan policy costs $0.

Owner’s policy and lender’s policy

Texas has two types of policy, according to TDI: the owner’s policy and the loan policy.

  • The owner’s policy protects the buyer against losses from title problems that arose before the purchase and were not known at the time: forgery, missing heirs, unreleased liens, unrecorded easements and similar defects.
  • The loan policy protects the lender, up to the loan amount.

Simultaneous issue. Rate Rule R-5 sets the lender’s policy at $100 when both policies are issued at the same time, bear the same date, cover the same land and the loan does not exceed the owner’s policy amount. If the loan is larger, the lender’s policy costs the basic rate on the loan amount, minus the basic rate on the owner’s policy, plus $100. TDI’s FAQ adds that if you skip the owner’s policy, you pay full price for the loan policy.

You pay the premium once, at closing (TDI). The policy does not cover defects created after it is issued, problems you knew about, boundary disputes unless you bought extra coverage, or zoning and land-use violations.

Who pays, under Texas forms

TDI says the buyer and seller may negotiate who pays the premium. The TREC One to Four Family Residential Contract (Resale), version 20-19 effective July 1, 2026, reflects that choice:

ItemTREC No. 20-19
Owner’s policyParagraph 6A: “at Seller’s” or “Buyer’s expense,” by checkbox
Loan policy with lender-required endorsementsBuyer’s expense (paragraph 12A(2))
“Shortages in area” amendmentParagraph 6A(8): Buyer or Seller, by checkbox
Copies of restrictive covenants and exception documentsBuyer’s expense (paragraph 6B)

The contract also requires the seller to furnish a title commitment within 20 days after the title company receives the contract. The commitment lists the exceptions the policy will carry, so read it before closing.

Frequently asked questions

Can I choose my own title company in Texas?

Yes. TDI says you may choose any title company and do not have to use one selected by an agent, builder or lender. It cites Section 9 of the federal Real Estate Settlement Procedures Act, which bars sellers from conditioning a home sale on the use of a specific title insurer. Buy only from a licensed company; see how to verify a license in Texas.

Is title insurance cheaper at one Texas title company than another?

Not the premium. The Commissioner sets it, and Insurance Code § 2703.151 forbids charging a different rate. Escrow fees and other added charges are not set by TDI and can differ.

How much is title insurance on a $300,000 house in Texas?

Under TDI’s rates effective March 1, 2026, the owner’s policy premium is $1,768: ($300,000 − $100,000) × 0.00494, plus $780. A lender’s policy issued at the same time adds $100.

Who pays for title insurance in Texas, buyer or seller?

It depends on the contract. The TREC resale contract has a checkbox for the owner’s policy, at the seller’s or buyer’s expense, and TDI says the parties may negotiate. The lender’s policy is a buyer’s expense under the same contract.

Do I need an owner’s policy if I already pay for the lender’s policy?

The lender’s policy protects only the lender. TDI notes that buying both at the same time brings the lender’s policy down to $100. Without an owner’s policy, you pay full price for the loan policy and have no coverage of your own.

More Texas guides

Sources

Texas · All states · Federal guides