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5 minute read Published on Oct 15, 2026 by BrokerLink Communications
Your ownership of a property is legally referred to as a title, but many Canadians are unaware of the importance of title insurance. When you buy a property, you may be thinking about finding movers, closing costs, your home insurance, and renovations.
But what happens if something is wrong with the property's title?
Title insurance can help protect you against specific issues and risks related to real estate transactions. Here's why you should consider purchasing this additional coverage in Ontario.
Title insurance protects home buyers and lenders against financial losses resulting from title defects, ownership disputes, and other title-related issues. It is purchased separately from a homeowner's insurance policy.
Unlike homeowner's insurance, which covers accidental damage to your property, title insurance protects against title defects and fraud. It is a one-time purchase and does not cover losses caused by events such as fire.
In Ontario, title insurance is typically purchased through a lawyer during closing and generally costs between $200 and $500. Coverage remains in place for as long as you own the property.
Title is a legal term that refers to ownership of a property. When ownership is transferred from the seller to the buyer, the title is registered with the government's land registration system and serves as legal proof of ownership.
You can purchase residential title insurance through your lawyer or a title insurance company. Not all home insurance providers offer title insurance coverage.
Title insurance protects residential and commercial property owners, as well as lenders, from financial losses related to property ownership or title disputes. This coverage can provide protection if a title-related issue arises after the property transaction has been completed.
Title insurance does not cover physical damage to your home or issues such as water damage. Instead, it protects against ownership-related risks. For example, if a previous owner failed to pay outstanding property taxes, carried an unpaid second mortgage, or left other debts attached to the property, title insurance can help cover those costs.
Imagine you purchase a home and discover there is still $22,000 remaining on the previous owner's mortgage during the gap between closing and title registration. If you have title insurance, your insurer may cover the outstanding amount.
Another example is when a contractor places a construction lien on the property because they were never paid by the previous owner. Coverage may also apply to certain encroachment issues, such as a structure that extends onto a neighbour's property. Without title insurance, you could be responsible for legal fees, damages, and penalties.
The primary difference between these policies is what they protect against.
Title insurance protects against issues related to property ownership and title disputes, including real estate fraud. It does not provide coverage for fire, theft, or physical damage to your property.
Unlike home insurance, which must be renewed each year, title insurance is generally paid for once and remains in effect for as long as you own the property.
Title insurance helps protect homeowners from a variety of ownership-related risks that are not included under a standard home insurance policy.
Forgery, fraud, typographical errors, and mistakes in the property's legal description.
Outstanding utilities, mortgages, taxes, and condominium fees.
Removal of structures that violate municipal zoning regulations.
Claims from another individual asserting ownership or interest in the property.
Property liens and construction liens resulting from unpaid contractor invoices.
The gap period between closing and official registration of the property.
Title-related issues that affect your ability to mortgage, lease, refinance, or sell the property may be covered under the policy.
Title insurance does not protect against maintenance-related issues, structural damage, or other physical problems affecting your home.
Issues identified through new property surveys or inspections.
Zoning violations resulting from home renovations or additions you completed.
Burglary or home theft.
Environmental hazards such as contaminated soil.
Title defects disclosed before purchasing the property.
Normal wear and tear of the home.
Damage caused by fire, water, or sewer backup.
There are two primary types of title insurance available to property owners and lenders.
Owner's title insurance: Protects the property owner against covered title-related losses for as long as they own the property, subject to policy limits.
Lender's title insurance: Protects mortgage lenders against losses if a mortgage is found to be invalid or unenforceable.
Title insurance can also be purchased for either residential or commercial properties. However, it is not a replacement for commercial property insurance or tenant insurance.
Residential: Covers homeowners, cottage owners, condominium owners, rural properties, rental units, and vacant land.
Commercial: Covers office buildings, shopping centres, warehouses, industrial properties, and commercial developments.
Homeowners and condominium owners can benefit from residential title insurance both when purchasing a property and after they already own one.
Survey coverage: May help eliminate the need for an updated property survey.
Comprehensive protection: Provides broader protection against title-related losses.
Gap protection: Covers risks occurring between closing and registration.
Legal coverage: Helps cover legal costs associated with defending property ownership rights.
Title fraud occurs when someone uses stolen information or forged documents to transfer ownership of your property without your consent. In some cases, fraudsters may use the property to secure financing or obtain a mortgage.
Learn more through the Ontario government's title fraud resources.
Title insurance is typically purchased through your lawyer during the closing process. In Ontario, premiums generally range between $200 and $500. The one-time payment provides coverage for as long as you own the property.
Several companies across Canada specialize in title insurance products:
Stewart Title Guaranty Company
TitlePLUS
Chicago Title Insurance Company
FCT Insurance Company Ltd.
Before purchasing title insurance, consider these recommendations:
Home value: Ensure your property's value and replacement cost are accurately reflected.
Closing date: Confirm the policy becomes effective on your closing date.
Coverage details: Review all inclusions and exclusions carefully.
Property information: Verify that all property details and legal descriptions are correct.
Unlike home insurance in Ontario, title insurance is not mandatory. However, many homeowners choose it for added protection and peace of mind.
Title insurance became available in Ontario during the 1990s and has become a common consideration when buying a home.
Extended title insurance may provide additional protection for risks such as identity theft and certain title defects. Speak with your lawyer or insurer to explore available options.
Title insurance remains in effect for as long as you own the property. Coverage ends when ownership is transferred to a new owner.
If you have any questions, contact one of our local branches.