Estimate your Texas title insurance premiums based on property value.
Understanding Texas Title Insurance Premiums
Title insurance is a crucial part of real estate transactions in Texas, protecting both the buyer and the lender from financial loss due to defects in the title of a property. Unlike other insurance policies that cover future events, title insurance covers past events or issues that may have occurred before the policy was issued. In Texas, title insurance rates are regulated by the Texas Department of Insurance and are based on promulgated rate schedules.
How Title Insurance Premiums are Calculated in Texas
The cost of title insurance in Texas is determined by a tiered rate schedule set by the Texas Department of Insurance (TDI). These rates are applied to the "amount of insurance," which is typically the purchase price of the property for the owner's policy and the loan amount for the lender's policy.
The general structure of the TDI promulgated rate for Owner's Title Insurance is as follows:
First $100,000: $5.00 per $1,000 (or $5.00 per $1,000)
Amount over $100,000 up to $200,000: $4.50 per $1,000
Amount over $200,000 up to $1,000,000: $4.00 per $1,000
Amount over $1,000,000 up to $5,000,000: $3.50 per $1,000
Amount over $5,000,000 up to $15,000,000: $3.00 per $1,000
Amount over $15,000,000 up to $30,000,000: $2.50 per $1,000
Amount over $30,000,000: $2.00 per $1,000
Important Note: This calculator uses a simplified representation of the promulgated rates for demonstration purposes. Actual title insurance premiums can involve additional fees, endorsements, and specific circumstances that may affect the final cost. Always consult with a licensed title insurance agent or attorney for an exact quote.
Calculator Logic Explained
The calculator works by taking the provided property purchase price and applying the tiered Texas Department of Insurance (TDI) promulgated rate schedule. It calculates the premium for each tier of the purchase price and sums them up to provide an estimated total premium.
Formula Breakdown:
If the property value is $100,000 or less, the rate is $5.00 per $1,000. Premium = (Property Value / 1000) * 5.00
If the property value is between $100,001 and $200,000:
Premium for the first $100,000 = ($100,000 / 1000) * $5.00 = $500.00
Premium for the amount over $100,000 = (($Property Value – $100,000) / 1000) * $4.50
Total Premium = $500.00 + Premium for amount over $100,000
If the property value is between $200,001 and $1,000,000:
Premium for the first $100,000 = $500.00
Premium for the amount from $100,001 to $200,000 = (($200,000 – $100,000) / 1000) * $4.50 = $450.00
Premium for the amount over $200,000 = (($Property Value – $200,000) / 1000) * $4.00
Total Premium = $500.00 + $450.00 + Premium for amount over $200,000
This tiered calculation continues for higher property value brackets based on the TDI promulgated rates.
This calculator provides an estimate for the base owner's title insurance premium. Additional charges may apply for lender's policies, endorsements, abstract updates, and other closing costs.
Use Cases
Home Buyers: Estimate the upfront cost of title insurance when purchasing a home in Texas.
Real Estate Investors: Budget for title insurance on investment properties.
Real Estate Agents and Lenders: Provide a preliminary cost estimate to clients.
function calculateTitleInsurance() {
var propertyValue = parseFloat(document.getElementById("propertyValue").value);
var resultDiv = document.getElementById("result");
resultDiv.innerHTML = ""; // Clear previous result
if (isNaN(propertyValue) || propertyValue <= 0) {
resultDiv.innerHTML = "Please enter a valid property purchase price.";
resultDiv.style.backgroundColor = "#dc3545"; // Red for error
return;
}
var premium = 0;
var rate100k = 5.00; // $5.00 per $1,000 for the first $100,000
var rate200k = 4.50; // $4.50 per $1,000 for amounts over $100,000 up to $200,000
var rate1m = 4.00; // $4.00 per $1,000 for amounts over $200,000 up to $1,000,000
var rate5m = 3.50; // $3.50 per $1,000 for amounts over $1,000,000 up to $5,000,000
var rate15m = 3.00; // $3.00 per $1,000 for amounts over $5,000,000 up to $15,000,000
var rate30m = 2.50; // $2.50 per $1,000 for amounts over $15,000,000 up to $30,000,000
var rateAbove30m = 2.00; // $2.00 per $1,000 for amounts over $30,000,000
var tier1Limit = 100000;
var tier2Limit = 200000;
var tier3Limit = 1000000;
var tier4Limit = 5000000;
var tier5Limit = 15000000;
var tier6Limit = 30000000;
if (propertyValue <= tier1Limit) {
premium = (propertyValue / 1000) * rate100k;
} else if (propertyValue <= tier2Limit) {
premium = (tier1Limit / 1000) * rate100k; // Premium for the first $100k
premium += ((propertyValue – tier1Limit) / 1000) * rate200k;
} else if (propertyValue <= tier3Limit) {
premium = (tier1Limit / 1000) * rate100k; // Premium for the first $100k
premium += ((tier2Limit – tier1Limit) / 1000) * rate200k; // Premium for $100k to $200k
premium += ((propertyValue – tier2Limit) / 1000) * rate1m;
} else if (propertyValue <= tier4Limit) {
premium = (tier1Limit / 1000) * rate100k;
premium += ((tier2Limit – tier1Limit) / 1000) * rate200k;
premium += ((tier3Limit – tier2Limit) / 1000) * rate1m;
premium += ((propertyValue – tier3Limit) / 1000) * rate5m;
} else if (propertyValue <= tier5Limit) {
premium = (tier1Limit / 1000) * rate100k;
premium += ((tier2Limit – tier1Limit) / 1000) * rate200k;
premium += ((tier3Limit – tier2Limit) / 1000) * rate1m;
premium += ((tier4Limit – tier3Limit) / 1000) * rate5m;
premium += ((propertyValue – tier4Limit) / 1000) * rate15m;
} else if (propertyValue tier6Limit
premium = (tier1Limit / 1000) * rate100k;
premium += ((tier2Limit – tier1Limit) / 1000) * rate200k;
premium += ((tier3Limit – tier2Limit) / 1000) * rate1m;
premium += ((tier4Limit – tier3Limit) / 1000) * rate5m;
premium += ((tier5Limit – tier4Limit) / 1000) * rate15m;
premium += ((tier6Limit – tier5Limit) / 1000) * rate30m;
premium += ((propertyValue – tier6Limit) / 1000) * rateAbove30m;
}
// Ensure premium doesn't go below a minimum if applicable (though TDI rates don't explicitly state a floor based on value, often there's a minimum charge for policy issuance). For simplicity, we'll just display the calculated value.
resultDiv.innerHTML = "Estimated Title Insurance Premium: $" + premium.toFixed(2) + "";
resultDiv.style.backgroundColor = "#28a745"; // Success green
}