TDI’s Title Insurance Basic Manual Update: Two Noteworthy Changes to Endorsements
Effective November 1, 2024, the Texas Department of Insurance (TDI) implemented significant updates to the Basic Manual of Rules, Rates, and Forms for the Writing of Title Insurance in Texas. These changes include adjustments to endorsement charges, which TDI indicates are aimed at better aligning premiums with associated risks and administrative efforts.
1. Revised Premiums for Endorsements
Form T-3 (Assignment of Mortgage Endorsement): The premium now comprises the minimum Basic Premium Rate plus $100 for each additional full or partial 12-month period after the first anniversary of the initial policy date. Previously, the premium was solely the minimum Basic Premium Rate.
Form T-38 (Partial Release, Release of Additional Collateral, Modification Agreement, Reinstatement Agreement, or Release from Personal Liability Endorsement): The premium has increased to the minimum Basic Premium Rate plus $25 per year between the issuance of the endorsement and the policy date, up from the former rate of $100 plus $10 per year.
Form T-3 (Down Date Endorsement): For nonresidential construction projects, the premium has doubled from $50 to $100. The rate for residential construction projects remains unchanged at $50.
2. Introduction of Energy Project Endorsements
TDI has introduced new endorsements tailored for energy projects, such as electrical energy facilities. These endorsements address unique risks associated with severable improvements in energy projects. Specifically, they provide surface damage coverage for severable improvements that would not be insured under the other forms that cover surface damage related to mineral extraction. The premium for each of these endorsements is set at 5% of the Basic Premium Rate, providing specialized coverage options for the evolving energy sector.
If you are interested in a comprehensive overview of all changes, the full adoption order and related documents are available on TDI's website.