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The world of title insurance and closing loans can be confusing if you are not familiar with them. Below we have compiled a list of frequently asked questions about these issues to better answer your questions.


  1. What is Title Insurance?

    Title insurance is a policy that protects the rights of both the Lender and Borrower. There are two types of title insurance, an Owner’s Policy and a Loan Policy.

    A Loan Policy is required by most lenders when they issue you a loan. The policy is usually based on the dollar amount of your loan, and only protects the lender’s interest in the property should a problem with the title arise. It does not protect the buyer.

    An Owner’s Policy is usually issued in the amount of the real estate purchase. It is purchased for a one-time fee at closing and lasts for as long as you have an interest in the property. Only an Owner’s Policy protects the buyer, should a covered title problem arise.

  2. What types of problems can a title search reveal?

    Errors or omissions in deeds, mistakes in examining records, forgery, and undisclosed heirs are the main hidden title problems.

  3. Do I need owner's title insurance?

    Purchasing real estate is probably the biggest investment you will ever make. With that in mind, you will probably want to insure it, not only to protect it from fire and theft, but also from title defects that may allow someone else to hold a claim to your property.

    It is possible for prior owners and other entities to hold both legitimate and illegitimate claims against your property. Problems with the title can limit your use of the property and could lead to a financial loss. Title insurance protects you from potential risks associated with defects in title.

  4. How long does my coverage last?

    The owner’s insurance coverage never needs to be renewed. It is valid for as long as you or your heirs have an interest in the property.

  5. How much does owner’s title insurance cost?

    Probably a lot less than you think. Generally the cost of owner’s title insurance is about one percent or less of the value of the property. This premium is not paid annually, but is a one time fee and is offered at a discount if purchased with the loan policy at the time of the closing.

  6. What is a title commitment?

    A title commitment is the document by which a title insurer discloses to all parties connected with a particular real estate transaction, all the liens, defects, and burdens and obligations that affect the subject property. This report is normally prepared by a title company prior to a real estate transaction and to issuing a title insurance policy.

  7. What do I need to bring to the closing appointment?
    • A valid photo ID
    • Certified funds for the amount specified in the Closing Disclosure you received from your loan officer or lender

  8. How long does a closing take?

    Generally, closings last about thirty minutes to an hour depending on the amount of questions asked and/or the size of the closing package.