Because title insurance is much different than other types of insurance, many Louisiana homeowners do not know exactly what it is. Understanding what title insurance covers and what it doesn't cover can help a new homeowner to be better prepared to face future title issues if they should arise.
In the event that there is a title issue due to the actions of past owners, title insurance will protect the current homeowner. For example, if a previous owner of the property had acquired a lien on the property for unpaid taxes, there is a potential that the current owner could be involved in a dispute over the property's ownership. Title insurance would cover the current owner's expenses while they dispute the title claim in court.