This Is What Title Insurance Actually Covers

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Title insurance is one of those things most people have heard of… but few fully understand.

It's typically used when a buyer is purchasing or refinancing a property. In Ontario, lenders require it on virtually every mortgage deal.

Even without a mortgage, most lawyers still require it — because the cost of running all the searches for a full legal opinion would be higher than the one-time insurance premium.

But the real question is… what does it actually cover?

Every policy is different, and the list below isn’t exhaustive — but these are the most common protections your clients are actually getting:

Pre-existing debts tied to the property

If the previous owner left behind unpaid property taxes or utility bills, your client won’t be on the hook. Title insurance would cover it.

Unpermitted renovations

If a past owner made changes without permits — and the city now wants them fixed or removed — title insurance can help cover the cost to comply.

Encroachments

If fences, sheds, or structures cross property lines, title insurance helps cover the cost to move or resolve them.

Survey or title errors

If a title issue or survey mistake surfaces after closing — like a wrong boundary or registration problem — the insurer steps in to correct it.

Lawyer mistakes

If we make an error related to title that causes a problem later, the insurer could cover that too.

Title fraud

If someone steals your client’s identity and fraudulently transfers or mortgages their home, the insurer pays the legal costs to restore title.

Gap coverage

There’s a small window between closing and registration. If something goes wrong in that gap, coverage still applies.

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Additional Notes:

• It’s a one-time fee. No renewals, no recurring charges.
• Condo policies typically cost less — there’s no land component, therefore fewer risks to insure.
• If your client didn’t get title insurance when they bought, they may still be able to add it now with a Homeowner Policy.

Want to Check the Cost?

Our Legal Fee Calculator gives an instant breakdown of title insurance premiums — along with all legal fees, disbursements, and taxes.

Next time you’re helping a buyer estimate closing costs, run the numbers in real time.

It’s built to make your job easier.