Q: What is title?
A: Title is your legal right to own or use your property. Title also establishes any limitations on those rights. Q: What kind of issues could affect title and my rights?
A: • Marriage, divorce, death
• Unpaid taxes, unpaid child support
• HOA liens
• Home renovation liens (resulting when contractors fail to pay subcontractors, unbeknownst to you)
• Plus many more issues, ranging from the common and simple to the rare and complicated Q: Why should I purchase title insurance?
A: Title insurance is the best way to protect your property from future legal claims. It’s a one-time fee that covers you and your heirs’ financial investment as long as you own your property. The policy also covers potential legal fees for settling claims against your property rights. Q: Does Texas have the highest title insurance rates in the nation?
A: No, special interests have come to this faulty conclusion from studies that used irreproducible data, online quoting systems and questionable methodology. The claims have been debunked by professional economists. Q: Has the price of a title policy in Texas increased?
A: No, they’ve actually decreased in the past 25 years! In fact, Texas title rates are 15% less today than they were in 1991. Q: Texas uses the “file-and-use” model for auto and homeowners insurance, why shouldn’t we use it for title insurance too?
A: Title insurance is a risk elimination product with premiums paid only once at closing. It shouldn’t be confused with homeowners and auto insurance policies that protect against future unknown hazards and must be purchased every year. Rate regulation is not one-size fits all. Comparing title insurance to auto and homeowners insurance is a faulty comparison. Q: How are rates for title insurance set?
A: The Texas Department of Insurance determines rates based on real world expense and revenue data in a transparent public hearing where consumers have a seat at the table.