Texas Title Policy Calculator
Important: Texas title insurance rates are promulgated by the Texas Department of Insurance. All title companies charge the same premium rates. This calculator uses current TDI rates and provides estimates only.
Buying or refinancing property in Texas involves several important closing costs, and title insurance is one of the most significant. Many buyers and property owners struggle to understand how title policy premiums are calculated, what discounts apply, and how endorsements or escrow services affect the final amount. Because Texas title insurance rates are regulated by the state, calculations follow a structured system—but that doesn’t mean they are easy to estimate manually.
The Texas Title Policy Calculator is designed to simplify this process. It helps homeowners, buyers, lenders, investors, and real estate professionals calculate estimated title policy costs based on coverage amount, policy type, rate file, discounts, endorsements, and additional services. With this tool, you can plan ahead, avoid surprises at closing, and understand exactly where your money is going.
What Is a Texas Title Policy?
A Texas title policy protects property owners and lenders against financial loss caused by title defects, including:
- Unknown liens
- Ownership disputes
- Errors in public records
- Forged or fraudulent documents
- Undisclosed heirs
In Texas, title insurance premiums are regulated by the Texas Department of Insurance (TDI). This means all title companies charge the same base premium rates, though additional services and endorsements may vary.
What the Texas Title Policy Calculator Does
This calculator estimates the total title policy cost by accounting for:
- Policy coverage amount
- Policy type (Owner’s, Lender’s, or Combined)
- Rate file selection (Basic, Reissue, or Substitution)
- Prior policy credits
- Liability coverage
- Available discounts
- Special endorsements
- Title search type
- Escrow or settlement services
- Recording fees
The result is a detailed breakdown that shows how each factor contributes to the final cost.
How to Use the Texas Title Policy Calculator
Follow these steps for an accurate estimate:
1. Enter Policy Amount
Input the total coverage amount for the title policy. This is usually the property value or loan amount.
2. Select Policy Coverage Type
Choose between:
- Owner’s Title Policy
- Lender’s Title Policy
- Combined Owner’s & Lender’s Policy
Combined policies typically cost more but offer broader protection.
3. Choose Rate File
Select one of the following:
- Basic Rate – Standard new policy
- Reissue Rate – Discounted rate when a prior policy exists
- Substitution Rate – Reduced rate when replacing an existing policy
4. Enter Prior Policy Amount (If Applicable)
If using a reissue rate, enter the previous policy amount to calculate the reissue credit.
5. Enter Liability Coverage
Optional liability coverage adds additional protection and increases the premium slightly.
6. Select Available Discounts
Apply discounts if eligible, such as:
- New construction
- Veteran discount
- Senior citizen discount
7. Choose Escrow or Settlement Services
Select whether escrow services are included, charged separately, or not needed.
8. Add Special Endorsements
Optional endorsements provide extra protection, such as survey coverage, mineral rights, or environmental liens.
9. Select Title Search Type
Choose between full, limited, or update-only title searches, which affect the search fee.
10. Click Calculate
The calculator instantly displays a detailed cost breakdown and total policy cost.
Example Calculation
Example Scenario
- Policy Amount: $400,000
- Coverage Type: Combined Owner’s & Lender’s
- Rate File: Reissue
- Prior Policy Amount: $350,000
- Liability Coverage: $100,000
- Discount: Veteran (5%)
- Endorsements: Survey + T-19
- Search Type: Full
- Escrow Services: Included
Estimated Breakdown
- Base Premium: $2,050.00
- Liability Premium: $100.00
- Reissue Credit: –$180.00
- Discount Applied: –$93.50
- Endorsements: $75.00
- Title Search Fee: $400.00
- Escrow Fee: $450.00
- Recording Fees: $50.00
Total Estimated Policy Cost: $2,851.50
Understanding the Cost Components
Base Premium
Calculated using Texas state-regulated tiered rates based on policy amount.
Liability Premium
Adds coverage beyond standard protection for an additional cost.
Reissue Credit
Applies when a previous title policy exists, reducing the base premium.
Discounts
Special eligibility discounts lower the premium percentage.
Endorsements
Optional add-ons that provide protection for specific title risks.
Title Search Fee
Covers the cost of researching property records.
Escrow / Settlement Fee
Pays for handling funds, documents, and closing coordination.
Recording Fees
Covers filing documents with the county.
Who Should Use This Calculator?
- Home buyers in Texas
- Property investors
- Homeowners refinancing
- Cash buyers
- Real estate agents
- Mortgage professionals
- Title and escrow planners
Benefits of Using the Texas Title Policy Calculator
- Prevents surprise closing costs
- Improves budgeting accuracy
- Explains premium calculations clearly
- Identifies discounts and credits
- Saves time and manual calculations
- Suitable for purchases and refinances
Important Notes
- Texas title insurance premiums are regulated statewide
- Estimates may vary slightly by title company
- Endorsement availability may differ
- Final costs should be confirmed with a licensed title company
Frequently Asked Questions (FAQs)
1. Is title insurance required in Texas?
Lender’s policies are required for loans; owner’s policies are optional but recommended.
2. Are Texas title rates negotiable?
Base premiums are fixed, but service fees may vary.
3. What is a reissue rate?
A discounted rate when a prior policy exists.
4. What is a substitution rate?
A reduced premium when replacing an existing policy.
5. Do endorsements increase cost?
Yes, each endorsement adds a fixed fee.
6. Is escrow included in title insurance?
Sometimes included, sometimes charged separately.
7. Does property value affect the premium?
Yes, higher coverage amounts increase the premium.
8. Is the owner’s policy a one-time payment?
Yes, paid once at closing.
9. How long does coverage last?
As long as you own the property.
10. Can cash buyers skip title insurance?
They can, but it is risky.
11. Are discounts guaranteed?
Only if eligibility requirements are met.
12. Is liability coverage required?
No, it is optional.
13. Are recording fees included?
Yes, estimated recording fees are included.
14. Is this calculator legally binding?
No, it provides estimates only.
15. Should I recalculate if numbers change?
Yes, always recalculate if coverage or policy details change.
Conclusion
The Texas Title Policy Calculator is a powerful planning tool for anyone involved in a Texas real estate transaction. By breaking down premiums, credits, discounts, endorsements, and service fees, it provides clarity and confidence before closing day. Whether you are buying, refinancing, or investing, this calculator helps you understand costs, avoid surprises, and make informed financial decisions with ease.