What is Title Insurance? We explain it in plain English

Learn the basics of title insurance and what it covers you from.

By Homicity

Jun 12, 2018

What is Title Insurance? We explain it in plain English

When you purchase a property, you hear an extensive list of real estate terms that agents like to throw around like confetti, for example, title insurance. Ever heard of it?

It is a specific type of insurance, different than homeowner’s insurance. I’ll offer some translation:

-      Title simply refers to the legal ownership of property

-      Insurance is protection against loss 

Put those two together, and you get title insurance. FCT, a title insurance company in Ontario describes it as protection for your ownership.

Being an owner is risky business. The chances of losses may seem unlikely until they happen to you. Title insurance is necessary to protect you against them, whether past or future. It offers coverage for areas like fraud, forgery, encroachments, lack of building permits and duty to defend. It also crucial because how much do you really know about your house? Issues you might not be aware of might arise anytime. 

Imagine yourself holding the keys to the property you just bought. After moving boxes and unpacking someone knocks on the door. The stranger claims that he – not you – own the property you just moved in due to a mistake in public records. Title insurance would protect you from these kinds of events related to your property’s ownership. With title insurance, you can keep your keys in your pocket without worry. You can buy your title insurance through your lawyer, title company or insurance broker for a one-time fee (premium).

Wait – what if I bought a home and didn’t get title insurance? No problem. 

In residential title insurance, there are policies for new or existing homeowners. So, if you missed the tip on title insurance, you can still get it. Typically, the insurance starts when on your property’s closing date, but it is possible to get it after that. One thing though – there are small differences between each other. Remember to ask your insurance company about these. 

Residential title insurance covers you not only against losses about to your property’s title but also from lawyers’ negligence, any losses between the time you purchase your home to the time registration is complete, legal expenses and more. 

There a couple of more things to consider when purchasing title insurance. First, make sure all facts are correct. Your policy should be mistake-free. The full value of your house, the property described and the terms of your policy (what it covers and what it doesn’t cover) must be included and understood fully. 

Title insurance is easy once it is translated into plain English. It is essential to consider the benefits of getting title insurance and avoid the terrifying tales of owning a home without it. And if you feel ready to purchase a home, you can start your search for the property the insurance is meant to protect. 


Homicity helps you find your dream home in the perfect community. Whether you are buying, renting, or selling, you can navigate the Canadian real estate market with confidence with our expert advice, market news, and recommendations powered by AI.

Join the conversation

Please login to leave a comment

Don't have an account?

Sign Up

Articles selected for you:

Five things you need to know about the new mortgage stress test rules

On April 6, new mortgage stress test rules will come into effect.

Ottawa’s real estate market starts off slow in January 2020

Ottawa’s inventory shortage impacts the resale market with increased prices and decreased sales.

What to expect from proptech in 2020

Proptech is anticipated to disrupt the real estate industry in new and creative ways.

Condo sales lead the way in December 2019

The Ottawa real estate market closes out the decade with record-breaking numbers.