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Title Insurance

Texas has the most heavily regulated title insurance market in the country. As a result, competition is eliminated from the title insurance market, and costs increase for both consumers and businesses.

“Consumers are not only burdened by high prices, they are also deprived of choice.”
— Vance Ginn, Ph.D.

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Vance Ginn, Ph.D.

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Recommendations

  • Eliminate Texas’ price fixing of title insurance policies that costs Texas consumers as much as $186 million per year by letting companies set prices in the market.

Talking points for liberty fighters

  • The Texas “title insurance tax” on Texas homeowners in 2016 was between $111.1 million and $186.5 million, averaging $342 to $574 per home sale.
  • Texas had the 12th highest price for title insurance among the 50 states for a policy on the average priced home ($260,064) sold in Texas in 2016.
  • Texas has the most restrictive regulation of title rates and forms (policies) in the nation. It allows no opportunity for insurers to innovate with their products or to lower rates in order to compete for consumers’ business.
  • Much of the revenue from title insurance policies is wastefully spent to the benefit of the industry; on average, only 13% of the cost of a title policy on a $260,064 home is spent benefiting consumers by reducing risk or paying claims.
  • Higher prices in Texas do not benefit Texas consumers; higher prices do not make titles in Texas any safer than titles in other states.

Our stance on specific bills related to this issue

SB 1062 & HB 3228

Gives consumers the right to participate in title insurance rate hearings by providing standing to the public to appear as a party, to offer evidence at hearings, and to request a rate hearing be held to consider a rate change more frequently than every five years.

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Research