Quick Answer
Texas title insurance protects against covered title defects that existed before the policy was issued. In Texas, title insurance rates are regulated by the Texas Department of Insurance (TDI), and all licensed title insurance companies charge the same approved basic rates. Effective March 1, 2026, TDI ordered a 6.2% reduction in basic title insurance premium rates.
If you are buying or selling real estate in Texas, understanding title insurance is essential. Texas has a unique regulatory framework for title insurance that differs from many other states. This guide covers how title insurance works in Texas, what it covers, what it costs, and what buyers and sellers should know.
How Texas Title Insurance Differs
Texas is one of the few states that regulates title insurance rates at the state level. The Texas Department of Insurance (TDI) sets the basic premium rates that all licensed title insurance companies must charge. This means the base cost of title insurance is the same regardless of which title company you choose. For a broader overview, read our general guide on what title insurance is and why it matters.
What Does Texas Title Insurance Cover?
A Texas title insurance policy protects against covered title defects such as:
- Forged documents in the chain of title
- Unknown heirs claiming ownership
- Improperly recorded documents
- Undisclosed easements or restrictions
- Mistakes in public records
- Liens that were not properly released
Learn more about what an owner's title insurance policy covers and what a lender's policy covers.
Texas Title Insurance Rates (Updated for 2026)
On March 1, 2026, TDI's 6.2% reduction in basic title insurance premium rates took effect. Under the current rate schedule, the approximate basic premium on $268,500 of coverage is about $1,612. Below are representative basic rate tiers (consult TDI or your title company for exact rates):
| Coverage Amount | Approx. Basic Premium (2026) |
|---|---|
| $100,000 | $675 |
| $150,000 | $968 |
| $200,000 | $1,244 |
| $268,500 | $1,612 |
| $300,000 | $1,775 |
| $500,000 | $2,740 |
Note: These are basic premium estimates. Actual premiums may include additional fees, endorsements, or discounts. Use our Texas Title Insurance Premium Calculator for a more precise estimate.
Owner's vs. Lender's Policy in Texas
In a financed Texas transaction, the lender will require a lender's title insurance policy. The buyer is typically also offered an owner's policy. While the lender's policy protects the lender's loan, the owner's policy protects your equity and ownership rights. For a detailed comparison, read owner's vs. lender's title insurance.
What a Texas Title Company Does
A Texas title company performs several critical functions: it searches public records for liens, judgments, easements, and other matters affecting title; it examines the chain of ownership; it prepares a title commitment for review by all parties; and it facilitates the closing process. For a complete overview, read what a title company actually does.
Educational Information
This article provides general educational information about Texas title insurance and real estate matters. Laws, regulations, and title practices vary by jurisdiction. This content does not constitute legal advice, a title opinion, or a commitment to insure. Consult qualified professionals for advice specific to your transaction.
Property Research Before You Buy
Before committing to a real estate transaction in Texas, it is wise to research the property. 1st Option Title offers free Property DNA Reports that provide comprehensive title research information. A Property DNA Report is not title insurance, a title commitment, a title search, or a legal ownership opinion. It is an informational research report to help you make informed decisions early in the process.
Authoritative Resources
Texas Title Insurance Resources
FAQs
Is title insurance required in Texas?
Title insurance is not legally required by the state of Texas for the buyer, but lenders almost always require a lender's policy. Owner's coverage is optional but strongly recommended. See Is Title Insurance Required When Buying a Home? for more details.
Can I shop for title insurance in Texas?
Texas sets the basic premium rates, so the base cost is the same at every licensed title company. However, you can choose your title company based on service, experience, and expertise, particularly in handling complex transactions.
Does Texas title insurance cover mineral rights?
A standard Texas title insurance policy typically contains an exception for mineral rights reservations that appear in the public records. If you need coverage for mineral interests, discuss specific endorsements with your title company.