Title Insurance Frequently Asked Questions
Is title insurance required?
When purchasing real estate, your lender will likely require title insurance. The coverage allows the lender to sell the mortgage to their investors and keep more money available for other loans.
Where can I purchase title insurance?
You can purchase title insurance directly from a title insurance company or an individual agent licensed to sell title insurance. You can utilize the LDI's Search for Company or Agent feature to find companies and individual agents licensed to sell title insurance in Louisiana.
What are my rights when purchasing title insurance?
You are not required to use the suggested title company or closing agent. You have the right to shop for and choose your provider of title insurance and settlement services. You'll need to know the purchase price to make price comparisons on title services; however, you can still search for licensed title companies and make a list of questions to ask title insurers prior to signing a contract. Be sure to ask what services and fees are included in the title premium, as well as any fees charged separately.
Are there different types of title insurance policies?
Yes. There are two different types of title insurance policies: owner's and lender's.
An owner's policy protects you for the full price of your home plus legal costs if a title or ownership issue arises after you buy your home. This type of policy is issued for the amount you paid for your home, and will cover you as long as you own an interest in the property. You are not required to purchase an owner's policy.
If you borrow money to buy your home or property, your lender is likely to require you to buy a lender's policy. A lender's policy only protects the lender if a title or ownership problem comes up after the property is purchased. A lender's policy is issued for the amount of the mortgage, and the coverage decreases as you pay down your loan. Unlike an owner's policy, the lender's policy ends when you pay off your mortgage. You may be expected to pay the premium for this type of coverage,