1. What is title insurance and why do I need it?
  Title insurance protects your investment in your real estate. A title insurance policy protects you against unknown or hidden title defects and liens existing as of the date of the policy. Those hidden risks can be false impersonation of the true owner, forged deeds, undisclosed or missing heirs and human error mistakes, such as recording of legal documents. If a claim arises, the title insurance company provides legal assistance via representation, if necessary, and complete resolution of the claim, even if that involves a total payback of the liability amount (sales price when purchased).

2. Can I get title insurance cheaper if I look for it on my own?
  Title insurance rates are set by the Department of Insurance and are not negotiable (see Rates and Rules section). Every title company must offer the same rates and competes for your business by providing excellent service.

3. I'm refinancing my home. Why does the lender get a new title insurance policy? Do I need one too?
  The lender must get a new policy. However, there is a credit for title insurance issued within the past 7 years. Your title company will calculate that credit at the time of closing and it will appear on your settlement statement. The policy issued to the lender when you purchased the property and the debt incurred will be paid in full at the time of your refinance. Therefore, your new lender will obtain a policy, reflecting the new debt information. You, as the homeowner, can purchase a new policy reflecting new lender and debt information, for a greatly reduced simultaneous rate. Ask your title company closer to quote for a simultaneous owner policy.

4. I'm selling my home. Why do I have to pay for the buyers' title insurance?
  You don't have to pay for the buyers' policy. In the standard Texas Real Estate Commission contract for sale in paragraph 6, there is a box to select whether seller or buyer furnish the title insurance. Common practice has been that the seller provides new title insurance to the buyer, but it is negotiable.

5. Is title insurance the same thing as homeowner's insurance? If my house burns down, does the title insurance cover me?
  No, title insurance is not the same as homeowners, but is often mistaken for the same. Homeowners insurance, which must be paid every year, protects against damage to the home and/or property and contents due to fire, water or theft. Title insurance is paid one time and remains in effect until the property is sold, and in Texas continues to protect the seller without limit as to time.

6. I received a title insurance policy when I bought the house. Do I need a new one now that my home has increased in value?
  Regardless of the current value of the property, should you have a "total loss" claim, your coverage would be limited to the amount stated on your policy (probably the purchase price at the time you bought the property). In order to obtain an increased value endorsement, you will need to provide your current owner's policy of title insurance along with evidence of the current value (independent appraisal or even the tax value as established by the tax appraisal district). The premium for the increased value endorsement would be the cost based on the full, current value less the premium paid for the original policy, but not less than $270.

7. My home has been in my family for generations, and I do not think there's ever been a title insurance policy issued on it. I inherited the house last year; it's my home, and I have no intention of selling it. Can I get a policy now? Should I?
  You may obtain an owner's policy of title insurance for property you own. You will need to provide evidence of the value of the property (independent appraisal or even the tax value as established by the tax appraisal district if that value is sufficient). The premium for the owner's policy depends upon the amount of coverage on the policy. The premium rate schedule is set by the Texas Department of Insurance, and all title insurance agents must follow this schedule.

8. What is meant by a title defect?
  A title defect is anything in the entire history of ownership of a piece of real estate which may encumber the owner's right to the "peaceful enjoyment" of the property which may cause the owner to lose any portion of the property.

9. Why should I protect the home I buy with title insurance?
  Without title insurance, the homeowner becomes a self-insurer, which is highly inadvisable.

10. Why isn't an attorney's opinion sufficient if he or she has examined the title?
  There are often many title defects, which even the most astute title examination will not uncover. Chance of a recovery of a title loss in this case will depend on the solvency of the attorney and the attorney's liability is limited. The attorney is not liable for loss caused by hidden defects.

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