Insurance Department Cuts Title Rates by 3.2 Percent

AUSTIN – The Texas Insurance Commissioner signed an order reducing Texas title insurance rates by 3.2 percent. The new rates take effect on February 1, 2007.

The rate cut follows a rate reduction of 6.5 percent in 2004. Rate rulings occur every two years. All told, the Department has cut rates by approximately 17 percent over the last eight years.

In 1998, title insurance for a sample $100,000 house was approximately $1,023, compared to the $843 that title insurance will cost effective in February.

Title insurance is purchased in real estate transactions to protect the buyer and lender in the event that the title is ever challenged. Unlike most Texas insurance rates, title rates are set by the Commissioner of Insurance and the same rate must be charged by all title companies. Rates are determined through actuarial analysis by the Texas Department of Insurance, taking into consideration expenses, profit targets and loss history.

For more information contact: PIO@tdi.state.tx.us

Last updated: 01/23/2007