The Truth About Title Insurance

It's easy to say something. It's a lot harder to back it up. Like yelling "Fire!" It always gets your attention - but it doesn't mean there's actually a fire. 

Special interests, sponsored by a few individuals, recently started yelling "Fire!" because they want homebuyers to pay more for title insurance so they can pay less.

Don't be alarmed. Here's a guide to help discern what's really happening in Texas:



Title insurance costs more in Texas than other states. 

Texans pay less and get a better product, without all the add on fees found in other states. Texas' rates are based on actual financial data and are designed to ensure the majority of consumers get the best possible price. In fact, rates in Texas are 15% less today than they were 25 years ago. 

There’s no competition in the title insurance industry. 

Competition is fierce among title agents. Almost 600 agents across the state compete every day on both quality and service. Having highly skilled staff, quality title plants, convenient locations, the latest technology and handling transactions efficiently and on time are just a few of the ways in which they attract and keep customers.

Texas’ low claims rate is a bad thing. 

Texas’ low claims rate reflects how good our system is. Our job is to eliminate claims; and we achieve this goal better than almost every other state.

Homeowners will pay less under “file-and-use.” 

Unless you’re among the select few, “file-and-use” will actually increase prices, increase claims and eliminate competition.

You can’t “shop” for title insurance under the current system.

A consumer’s right to shop for title insurance is protected by federal law.  Buyers always get to choose who to use!

Title insurance should be priced like auto or home insurance.

Title insurance isn’t like auto/home insurance. Title insurance premiums are paid once and eliminate risk. Auto/home insurance premiums are paid annually and manage risk.