Unlike many other states where title insurance companies compete on price, Texas title insurance premiums are strictly regulated by the Texas Department of Insurance (TDI). The "Basic Premium Rate" is set by the state Commissioner, meaning the cost for the base policy will be identical regardless of which title company you choose for your closing.
How the Premium is Calculated
The premium is based on the policy amount—typically the sales price of the property for an Owner's Policy, or the loan amount for a Lender's Policy. The rates follow a tiered structure where the cost per thousand decreases as the property value increases.
The calculation uses a "step-down" formula defined in the Texas Title Insurance Basic Premium Rates manual (R-1).
Policy Amount Range
Rate Calculation Rule (Current)
Up to $100,000
Base of $238 (at $10k) + $6.60 per additional $1,000
$100,001 to $1,000,000
Base of $832 + $5.27 per additional $1,000
$1,000,001 to $5,000,000
Base of $5,575 + $4.33 per additional $1,000
$5,000,001 to $15,000,000
Base of $22,895 + $3.57 per additional $1,000
$15,000,001 to $25,000,000
Base of $58,595 + $2.54 per additional $1,000
Over $25,000,000
Base of $83,995 + $1.52 per additional $1,000
Simultaneous Issue
If a homebuyer purchases an Owner's Policy and a Lender's Policy at the same time (which is standard in most financed transactions), they qualify for a "Simultaneous Issue" rate. In Texas, if the Lender's Policy amount does not exceed the Owner's Policy amount, the premium for the Lender's Policy is essentially a nominal fee (usually $100), rather than the full basic premium calculated separately.
Common Endorsements
While the base premium is fixed, total costs can vary based on specific endorsements required by the lender or requested by the buyer:
Area and Boundary Amendment: Often referred to as "Survey Coverage." It changes the survey exception to read "shortages in area" only. The cost is typically 5% of the Basic Premium (Owners Policy).
T-19.1 Endorsement: Provides coverage for minerals, encroachments, and structure damage. For residential properties, the cost is 5% of the Basic Premium (minimum $50).
*Disclaimer: This calculator estimates premiums based on the current Texas Title Insurance Basic Premium Rates (effective Sept 1, 2019, and valid through 2024). Actual costs may vary due to specific tax certificates, recording fees, or guaranty fees which are not included in the premium itself. Always consult with a licensed escrow officer for a final closing disclosure.*
function calculateTitleInsurance() {
// 1. Get Inputs
var salesPriceInput = document.getElementById('salesPrice').value;
var loanAmountInput = document.getElementById('loanAmount').value;
var isSimultaneous = document.getElementById('simultaneousIssue').checked;
var hasSurveyAmendment = document.getElementById('amendmentSurvey').checked;
var hasT19 = document.getElementById('endorsementT19').checked;
// 2. Validate Inputs
var salesPrice = parseFloat(salesPriceInput) || 0;
var loanAmount = parseFloat(loanAmountInput) || 0;
if (salesPrice === 0 && loanAmount === 0) {
alert("Please enter a Sales Price or Loan Amount.");
return;
}
// 3. Define Texas Rate Calculation Function
// Based on Texas Title Manual Rate R-1 (Effective Sept 1, 2019)
function getTexasBasePremium(amount) {
if (amount <= 0) return 0;
// Texas minimum policy amount usually starts calculation at 10k bracket effectively
// but formula is:
if (amount <= 100000) {
// $238 starting base for first $10,000 (or less)
// Plus $6.60 per thousand over $10,000
var base = 238;
if (amount <= 10000) return base;
var excess = amount – 10000;
// Round up to nearest thousand for calculation?
// R-1: "fraction of a thousand is considered a full thousand"
var thousands = Math.ceil(excess / 1000);
return base + (thousands * 6.60);
} else if (amount <= 1000000) {
// Base $832 for $100,000
// Plus $5.27 per thousand over $100,000
var base = 832;
var excess = amount – 100000;
var thousands = Math.ceil(excess / 1000);
return base + (thousands * 5.27);
} else if (amount <= 5000000) {
// Base $5,575 for $1,000,000
// Plus $4.33 per thousand over $1,000,000
var base = 5575;
var excess = amount – 1000000;
var thousands = Math.ceil(excess / 1000);
return base + (thousands * 4.33);
} else if (amount <= 15000000) {
// Base $22,895 for $5,000,000
// Plus $3.57 per thousand over $5,000,000
var base = 22895;
var excess = amount – 5000000;
var thousands = Math.ceil(excess / 1000);
return base + (thousands * 3.57);
} else if (amount 0) {
ownersPremium = getTexasBasePremium(salesPrice);
}
// 5. Calculate Lender's Policy
var lendersPremium = 0;
if (isSimultaneous) {
// Simultaneous Issue Logic (Rate R-5)
// If buying Owner's Policy, Lender's policy is $100 provided Lender's amount Owner's amount, pay $100 + difference in premium.
if (loanAmount > 0 && salesPrice > 0) {
if (loanAmount 0 && salesPrice === 0) {
// No Owner's policy, just Lender's policy (Refinance usually, but strict logic here)
lendersPremium = getTexasBasePremium(loanAmount);
}
} else {
// Not simultaneous – Calculate independently
if (loanAmount > 0) {
lendersPremium = getTexasBasePremium(loanAmount);
}
}
// 6. Calculate Endorsements
var endorsementCost = 0;
// Area/Boundary Amendment (R-16): 5% of Basic Rate (Owner's Policy Rate)
// Usually capped? Not strictly in regulation, usually just 5%.
if (hasSurveyAmendment && ownersPremium > 0) {
endorsementCost += (ownersPremium * 0.05);
}
// T-19.1 (R-29): 5% of Basic Rate for residential, Min $50
if (hasT19 && ownersPremium > 0) {
var t19Cost = ownersPremium * 0.05;
if (t19Cost < 50) t19Cost = 50;
endorsementCost += t19Cost;
}
// 7. Totals
var totalCost = ownersPremium + lendersPremium + endorsementCost;
// 8. Display Results
document.getElementById('ownerPremiumResult').innerHTML = "$" + ownersPremium.toLocaleString('en-US', {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('lenderPremiumResult').innerHTML = "$" + lendersPremium.toLocaleString('en-US', {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('endorsementTotal').innerHTML = "$" + endorsementCost.toLocaleString('en-US', {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('grandTotal').innerHTML = "$" + totalCost.toLocaleString('en-US', {minimumFractionDigits: 2, maximumFractionDigits: 2});
// Show result area
document.getElementById('results-area').style.display = 'block';
}