Apr 16, 2013

Texas Title Policy Rates Increasing

Effective May 1st, title insurance rates in Texas are increasing by 3.8%. This marks the first rate increase in more than 20 years. In Texas, rates are determined by Texas Dept. of Insurance and all title insurance companies must charge the same.

So what is title insurance and do you need it? Title insurance protects you from other claims of ownership, outstanding debts of previous owners, and other title potential problems. It does not insure against fire, flood, or any other types of property damage or loss.

Before selling a title insurance policy, the title company will check for problems with your title by researching public records, including deeds, mortgages, wills, divorce decrees, court judgments, tax records, liens, encumbrances, and maps. If there is a claim against your property after purchase, the company will then defend you in court and will pay you for covered losses up to the amount of your policy.

The following Title Insurance Premium Rates are based on the sales price of the property. Premiums for policies $100,000 and over in Dallas County are:

$100,000 is $843 and going up to $875
$500,000 is $2,979 and going up to $3,091
$1,000,000 is $5,649 and going up to $5,861
$2,000,000 is $10,039 and going up to $10,421

In Texas the title insurance policy is usually paid for by the seller, but it is negotiable. Banks and mortgage companies will require title insurance in order to loan on a property. [where: 75230]

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