What is “survey coverage”? The contract is so confusing!
In Texas, the base Owner’s Title Policy does not include title insurance coverage for issues related to the property’s survey such as boundary lines or encroachments. These are among the pre-printed exceptions to coverage: “any discrepancies, conflicts, shortages in area or boundary lines, or any encroachments or protrusions, or any overlapping of improvements.”
“Survey coverage,” “survey deletion coverage,” or the “Area and Boundary Amendment” is additional insurance that can be purchased to cover some of the unknown, survey-related issues that might arise after closing – essentially, mistakes the surveyor may have made. Purchasing the additional coverage gets the title insurance company – and their attorneys – involved to resolve or settle a future dispute related to the survey, if it’s covered. The “deletion” aspect refers to deleting most of the survey-related exceptions on the title insurance policy.
When the coverage is purchased, the pre-printed exceptions on the policy would then read more like: “Exclusions from coverage: shortages in area.”
It’s very important to note that the Title Company will still add to the list of exceptions or exclusions anything their examiners find on your particular property survey when reviewing it; the new owner would be unable to attempt an insurance claim down the road related to those specific items. Remember, insurance is for future unknowns. For example, if your fence is not exactly on the property line – and very few are – the title company would point that out to you when they review the survey by adding it to the list of exclusions. If you and your neighbor had a dispute related to the fence years later, you could not file a claim on your title insurance policy because it was specifically excluded from the beginning.
Why can’t “shortages in area” be deleted from the exceptions? In Texas, a Title Insurance Company is prohibited from insuring the exact amount of land - regardless of whether it’s a small subdivision lot or large tract of acreage.
Not all surveys are created equal. The Title Company will examine the survey to see if it meets their criteria for coverage, based on age and legibility, disclosed changes since it was surveyed, prior issues with a particular surveyor, and other factors. In some cases, a new survey may be required before closing if the Title Company is asked to provide coverage.
The cost of the survey coverage (amendment or endorsement to the title insurance policy) varies based on the type of property and sales price. For residential properties, the additional cost is calculated as 5% of the base policy premium for the Owner’s Title Policy (OTP). OTP premiums are fixed by the Texas Department of Insurance based on a formula involving the sales price.
For example, the survey coverage on a $350,000 home would be calculated (based on rates as of August 2025):
OTP = $2,150 x 5% = $107.50 additional cost for survey coverage
For non-residential properties, the cost is currently 15% of the base Owner’s Title Policy premium.
OK, so how do I fill out the TREC contract based on whether or not there will be survey coverage on the title policy?
Most buyers, sellers, and even real estate agents find this subparagraph confusing. “Buyer wants the survey covered – what do I check?!” Now that you understand how the “survey coverage” is actually deleting exceptions – and thereby adding to the coverage – it makes a little more sense. Feel free to scroll back up and revisit the explanation.
Shown here is the TREC One-to-Four Family Residential Contract (Resale), as it appears in August 2025. Here’s what to check, based on what the parties want:
Paragraph 6A(8)(i): makes no changes to the pre-printed exceptions and there will be no coverage for the survey.
Paragraph 6A(8)(ii): adds survey coverage to the policy by deleting all of the exceptions apart from “shortages in area”. The parties must decide which of them will pay for this coverage.
Whether or not survey coverage is appropriate on a title insurance policy is always a decision that an individual Buyer must make based on the property, the survey, the cost, and the Buyer’s tolerance for risk. Your real estate agent cannot make this decision for you, but will connect you with appropriate people at the Title Company to discuss it further based on your specific transaction.
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Bart Stockton is Associate Broker (TX & OK) and Chief of Operations for Paragon. An educator at heart, Bart writes and instructs continuing education courses focusing primarily on the topics of contracts, law, ethics, and risk reduction. Nothing in this post shall constitute legal advice; consult a skilled real estate attorney. ©2025 Bart Stockton Real Estate Education. All rights reserved. Used by permission.
