Texas title insurance premiums are set by the Texas Department of Insurance, not by individual title companies, and the rate is the same no matter who writes your policy. For policies over $100,000, the formula is (Policy minus $100,000) multiplied by 0.00494, plus $780. On a $500,000 home, that works out to an owner’s policy premium of $2,756, effective under the rates in place as of March 1, 2026. Calculators and the full TDI rate PDF are linked below if you want to check the math yourself.
TL;DR:
- Title insurance premiums in Texas are set by the Texas Department of Insurance and are the same across all licensed companies, regardless of provider or county.
- For policies above $100,000, premiums are calculated with the formula: (Policy minus $100,000) times 0.00494, plus $780, with a $100 add-on possible for simultaneous issue loans.
- The basic premium remains fixed, but escrow, settlement, and endorsement fees vary by company and can be negotiated or shoped for better rates.
- Buyers should verify the premium with the TDI formula and compare quotes early to negotiate who pays the owner policy and minimize non-regulated fees.
- Utilizing platforms like Ficustree can help buyers model full closing costs, including title premiums, before making an offer or signing any documents.
Table of Contents
- Official rates and how to calculate them using TDI rules
- Worked examples and quick lookup for common sale prices
- What adds to the title or closing line beyond the basic premium
- How to use a title premium calculator and what inputs matter
- Who pays the owner policy and negotiation levers for buyers and sellers
- How Ficustree helps Texas first-time buyers budget and negotiate title costs
- Three steps to verify, compare, and negotiate title costs
- Run your Texas closing-cost numbers with Ficustree
- FAQ
- Sources
Official rates and how to calculate them using TDI rules
Texas is one of a handful of states where title insurance premiums are promulgated, meaning TDI sets one rate schedule and every licensed title company in the state has to charge it. The current schedule, published by TDI, took effect March 1, 2026, and it works two different ways depending on your sale price.
For policies of $100,000 or less, you look the premium up directly in the TDI table. There is no math involved, just a banded rate tied to the policy amount.
For anything over $100,000, you use the formula:
- Subtract $100,000 from the policy amount.
- Multiply the result by 0.00494.
- Add $780 to get the final basic premium.
The $780 figure is the base premium baked into the table for the first $100,000 of coverage, and the 0.00494 rate applies to every dollar above that. TDI rounds basic premiums to the nearest dollar, and there is a minimum basic premium below which no policy can be written, regardless of sale price. If you want to verify a number by hand, the TDI FAQs page walks through the same formula with its own example.
Worked examples and quick lookup for common sale prices
The formula holds steady across price points, so once you know it, you can run the numbers for any Texas sale in seconds.
- $250,000 home: ($250,000 minus $100,000) times 0.00494, plus $780, equals $1,521.
- $340,000 home: ($340,000 minus $100,000) times 0.00494, plus $780, equals $1,966.
- $500,000 home: ($500,000 minus $100,000) times 0.00494, plus $780, equals $2,756.
- $750,000 home: ($750,000 minus $100,000) times 0.00494, plus $780, equals $4,090.
The owner’s policy on a $500,000 Texas home runs $2,756 under the formula TDI applies to every policy above $100,000. That number does not shift by title company, lender, or county.
Loan policies work differently when they are issued at the same time as the owner’s policy. Under simultaneous issue rules, the lender’s policy can often be priced at a flat $100 rather than a second full premium, as long as both policies close together and meet the conditions in the TDI Basic Manual. That $100 add-on is usually the biggest single savings most buyers never notice they are getting.
What adds to the title or closing line beyond the basic premium
The basic premium is fixed, but almost everything else on a title invoice is not. Escrow and settlement fees, courier charges, and wire fees are set by each title company, which means they vary from provider to provider even though the insurance premium itself does not.
- Escrow or settlement service fees, set independently by each title company.
- Endorsements like T-3 (restrictions), T-38 (minerals), T-23 (co-insurance), and down-date endorsements, each with its own pricing rule.
- Survey coverage, which may require an updated survey or an endorsement instead.
Recent TDI rulemaking has touched endorsement pricing and simultaneous-issue credits, so the fee attached to a specific endorsement can shift from one rate cycle to the next, per TDI’s rulemaking record. Understanding the role these title company services play helps explain why two quotes for the same home can still look different.
Pro Tip: Ask every title company for a written, itemized quote before you pick one, since the premium is fixed but the service fees around it are not.
How to use a title premium calculator and what inputs matter
A good calculator needs four inputs to give you a usable number: the sale price, the loan amount, whether the loan and owner policies will be issued simultaneously, and any endorsements you expect to need.
- Enter the full sale price first to get the basic owner’s premium.
- Enter the loan amount separately, since the loan policy premium is calculated on its own tier.
- Flag simultaneous issue if both policies close together, since that usually drops the loan policy to a flat rate.
- Add any endorsements you know you will need, since those carry separate charges.
Once you have an estimate, check it against your Loan Estimate and, later, your Closing Disclosure. If the numbers do not match, that is normal: disclosure formats differ by document, which is why the CFPB recommends comparing bottom-line totals rather than line items. For a manual check, the TDI PDF is the final word.
Who pays the owner policy and negotiation levers for buyers and sellers
In most Texas purchase contracts, the seller customarily pays for the buyer’s owner policy, while the buyer typically covers the lender’s title policy. Custom is not law, though, and the contract can assign either cost to either party.
Here is where you actually have room to negotiate:
- The premium amount itself is fixed by TDI and cannot be discounted or marked up.
- Who pays for the owner policy can be negotiated as part of the purchase contract.
- Escrow, settlement, and endorsement fees can be shopped across title companies for a better total.
- Ask for a written fee breakdown early so you can compare offers apples to apples.
As the OPIC shopping guide puts it, the only real lever on cost is who pays and which company handles the non-regulated fees.
How Ficustree helps Texas first-time buyers budget and negotiate title costs
Ficustree is an AI-powered home buying platform built for first-time buyers in California and Texas, and title costs are one of the line items we help buyers plan for before they ever get to the closing table. Because the TDI premium is predictable, we can map it straight into a buyer’s affordability model alongside the loan amount, HOA dues, and insurance.
This piece was written by Anand for Ficustree’s home buying education library, built to give Texas buyers the same rate math a title officer would use.
Three steps to verify, compare, and negotiate title costs
Before you sign anything, run the numbers yourself.
- Calculate the premium using the TDI formula and check it against your Loan Estimate.
- Request a title invoice early and compare escrow and settlement fees across two or three companies.
- Negotiate who pays the owner policy in your contract, and ask for every fee in writing.
These three steps cost nothing and can save hundreds of dollars in non-regulated fees before closing.
Run your Texas closing-cost numbers with Ficustree
Once you know the TDI formula, the title premium stops being a mystery line item and becomes just another number you can plan around, and that is exactly what Ficustree is built to help with. A platform can map the TDI rate schedule into your full closing-cost picture, so you see title fees next to your loan amount, HOA dues, and insurance before you ever sit down at the title company.
- Model your full Texas closing costs, including title premiums, before you make an offer.
- Some buyer representation options charge a flat fee at closing plus a commission, potentially with a rebate where permitted.
- Use a showing agent on demand instead of waiting on a single agent’s schedule.
If you are buying in Texas and want a clear closing-cost plan instead of a surprise invoice, start with Ficustree and see what your numbers look like before you sign anything.
FAQ
What are the typical rates for title insurance in Texas?
Texas rates are set by TDI and follow a tiered schedule: policies up to $100,000 use a direct table lookup, and anything above that uses the formula (Policy minus $100,000) times 0.00494, plus $780. Every licensed title company in Texas charges the same premium for the same policy amount, according to TDI.
How much is title insurance on a $500,000 house?
An owner’s policy on a $500,000 home in Texas costs $2,756 using the TDI formula for policies over $100,000. A simultaneous loan policy issued at the same time may add as little as $100 more, depending on the terms in the TDI Basic Manual.
What is the current guaranty fee for title insurance in Texas?
Texas premiums are not labeled as a separate “guaranty fee”; the basic premium itself, set by TDI’s rate schedule, covers the insurance cost. Any additional charges on a closing statement are typically escrow, settlement, or endorsement fees rather than a guaranty charge.
Can I negotiate title insurance costs?
The basic premium itself is fixed by TDI and cannot be discounted, but you can negotiate who pays for the owner’s policy in your purchase contract. You can also shop around for lower escrow and settlement fees, since those are set independently by each title company, per OPIC’s shopping guide.
Sources
- TDI title FAQs
- CFPB — explanation of differing title disclosures
- OPIC: Title insurance shopping guide
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