I wanted to make you aware that as of May 1, 2013, title insurance premiums in Texas will be adjusted by 3.8%. This is the first time title insurance rates in Texas have been raised in over 20 years – the last increase was in 1991. During those intervening years, title insurance premiums were decreased by almost 20%. Transactions that close on or after May 1st will include a title premium calculated at the new rate. For your reference, a title policy on a purchase for $300,000 will go from $1,911 to $1,983. Click here to download a copy of the new rate chart.
Title insurance rates in Texas are set by the Commissioner of Insurance as part of a thorough meeting and hearing process. Extensive statistical data is gathered from title insurance underwriters and agents on an annual basis, including expense and income figures as well as data on claims losses. This data is used to establish a rate that allows for a reasonable rate of return and is fair to the consumer. In Texas all title companies charge the same premiums, which is not true in many other states.
Please talk to your escrow officer if you have questions about the change as it pertains to a specific transaction.
All the best,
Marilyn Van Uum – Independence Title