Title insurance insures, defends, indemnifies, and protects the policyholder against claims or losses arising from a defect or claim against the title to real property. Title insurance is usually issued to the buyer of real property by the title company that conducted the title search.
In Louisiana, title insurance is a form of indemnity insurance that protects the policyholder from financial loss due to defects in the title to real property. When a property is bought or refinanced, a title search is typically conducted by a title company to ensure that the seller has a valid claim to the property and that there are no liens, encumbrances, or other impediments to clear ownership. If the title search fails to reveal such issues, or if such issues arise after the property has been purchased, title insurance covers the insured for any losses incurred as a result of these defects. The title insurance policy will also provide for legal defense against claims to the title. In Louisiana, title insurance is regulated by the Louisiana Department of Insurance, and companies offering title insurance must be licensed by the state. The cost of title insurance can vary, and it is a one-time fee paid at the closing of the real estate transaction.