What is Title Insurance?

Title Insurance is optional but should be strongly encouraged by your Lawyer when purchasing a residential, commercial or refinanced property.  It was first introduced in the 1990s and continues to be used to this day.  It is a regulated financial insurance product which will protect you against any defaults related to Ownership of the Property.

When I worked as a Real Estate Law Clerk, there was no question – we ordered Title Insurance for every qualified Buyer.  It is a one-time premium that will cost you between $250-$400 in Canada and it covers the insured property for you (or your heir) for as long as you own the property. 

If you did not purchase Title Insurance with your Lawyer at the time of purchasing your property, you can independently purchase it through a Title Insurance Company like First Canadian Title or Chicago Title.

Title Insurance covers a variety of issues that may not be included in your Home Insurance Policy.  They can include:

• Any typo errors, fraud or forgery in the legal description of the property
• Removal of any structures on the property that contravene with the zoning law
• Protection against losses due to unpaid debts or utility bills
• Protects you from any unforeseen title related issues which can become very costly when trying to mediate
• Protects you against any issues to sell, lease or mortgage your property
• Protects your from negligence or errors made by your lawyer relating to title

It sounds like Title Insurance covers it all; however, it does not.  Make sure your Lawyer reviews your Policy in detail so you are clear as to what is actually included.  If you need to make a claim, you can do so on your own or hire a Lawyer to process on your behalf.  It can take time and be overwhelming.  Hiring a Lawyer who has the experience and expertise to handle these claims can benefit you and may even expedite a resolution.