In Praise of Texas Title Insurance

Kara McGregor, Sr. Vice President of Business Development, Independence Title

Advocates for the deregulation of Texas title insurance don’t fully understand the product, or the ways in which the industry in Texas is exemplary.

In the U.S., for a one-time fee a title insurance policy protects property owners from losing their homes due to claims against their title to the property or old debt against the property. Texas title companies pay millions in claims every year. The policy is a one-time purchase to reduce the risk of financial losses, making it more like a financial service product than other types of insurance. Furthermore, unlike property, casualty and auto insurance, which have seen premiums rise steadily over the past 25 years, title premiums in Texas have dropped 15%.

Homeowners can rest easy about the integrity of their Texas title policy as to what it covers and what it doesn’t, and as to the rates they are paying for all the coverages and closing services provided by title companies. Texas offers one of the most transparent and complete set of coverages in the nation, with consistent rates applied evenly to all purchasers, residential and commercial alike. Homeowners in other states have to pay attorneys many times our rates to ensure the same coverages that are built into Texas title policies.  Furthermore, other states may have lower premiums in a few cases, but the premium is a small portion of the cost of closing a real estate transaction.  Texas closing costs are highly competitive when you compare all fees that title companies charge.

Other states with varying degrees of deregulation in their title industries are looking at Texas as a potential model to better protect consumers.  We have built an industry with integrity and transparency, and it is in the best interest of Texas homeowners that we continue to uphold the rules and regulations that make Texas a safe and welcoming environment for consumers and businesses alike.  Not only is our system not broken, it is a shining example of best practices in consumer protections.

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