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Texas Department of Insurance
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May 19, 2022

Title insurance isn’t required by law. But it protects you.


Having a property title means you own the property and can sell, rent, or transfer ownership of the property. Title insurance protects you against problems with getting a title when you buy property.

Title insurance companies search for problems with a title that need to be corrected before it’s given to you. Possible problems could be:

  • Unpaid property taxes.
  • Fraud or forgery of a previous deed (the legal document used to transfer the title).
  • A spouse or unknown heir who could make a claim against the property.

If there’s a challenge to your ownership later, your title company will handle the dispute.

If you’re borrowing money to buy a property, your lender will require you to buy a Loan Policy of Title Insurance (PDF) to protect their interest.

Otherwise, you can get peace of mind from an owner’s title insurance policy, which lasts for as long as you or your heirs own the property.

TDI sets premium amounts for title insurance policies sold in Texas, so the rates are the same for all title companies. It still might be worth researching title companies. You should make sure the title company is licensed and has good customer reviews. You also might want to check their closing costs, which can vary.

Watch “How does title insurance work?” featuring TDI’s David Muckerheide talking about title insurance.

Learn more