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Benjamin Berry · Co-founder & principal lawyer May 28, 2026 · 6 min read
Summary: Title insurance is a one-time-premium insurance policy (typically CA$300 to CA$1,000 for an Ontario residential owner-and-lender policy) that protects you and your lender against title fraud, unknown title defects, off-title issues like unpaid water and property tax arrears, encroachments, and survey problems. In Ontario, almost every lender requires it, and the owner policy lasts for as long as you own the home.
What is title insurance?
Title insurance is an insurance policy you buy once at closing that protects your ownership of the property against losses tied to the title itself: fraud, hidden defects, registration errors, and a defined set of off-title problems. Unlike property insurance, it covers issues that existed before you bought the home, not events that happen after.
A standard policy has two parts: an owner policy that protects you as the homeowner, and a lender policy that protects the mortgage lender. The owner policy lasts as long as you own the property. The lender policy lasts as long as the mortgage is in place.
In Ontario, four insurers write the majority of residential title insurance: FCT (First Canadian Title), Stewart Title Guaranty Company, Chicago Title Insurance Company Canada, and TitlePLUS (an Ontario product offered through LawPRO). Your real estate lawyer typically orders the policy on your behalf and selects the insurer based on the file.
What does title insurance cover in Ontario?
A residential owner policy in Ontario covers losses caused by title and off-title issues that existed at closing but weren't discovered, plus most title fraud occurring after you buy. The coverage is broad, but every policy has named exclusions.
Typical coverage includes:
Title fraud: someone forging your signature to transfer your home or register a fraudulent mortgage.
Unknown title defects: a registered claim or interest your lawyer's title search didn't catch.
Water and property tax arrears: unpaid municipal accounts that survive closing.
Outstanding work orders or open permits: issues with the City that weren't disclosed.
Encroachments: a fence, deck, or addition that crosses a boundary line.
Survey problems: discrepancies between the existing survey and the actual lot.
Forced removal: having to take down a structure built without proper permits or against zoning.
Typical exclusions include defects you knew about before closing, environmental contamination, Indigenous land claims, issues that only a brand-new survey would reveal, and zoning violations that haven't been enforced. Read your policy schedule on closing day so you know what's in and what isn't.
How does title insurance compare to a lawyer's opinion on title?
The historical alternative to title insurance is a lawyer's opinion on title, a written legal opinion that the title is good, backed by the lawyer's professional liability insurance. Both options satisfy most Ontario lenders, but they cover different things and cost different amounts.
Feature | Title insurance | Lawyer's opinion on title |
One-time cost (Ontario residential) | CA$300 to CA$1,000 | Often CA$500 to CA$1,500+ in additional search fees |
Covers post-closing title fraud | Yes | No |
Covers off-title issues (water, work orders) | Usually yes | Only what searches reveal |
Requires extra searches (zoning, work order, survey) | No | Yes |
Coverage period | As long as you own the property | At the date of closing only |
Claim process | File with insurer; insurer defends | Sue your lawyer for negligence |
In practice, almost every Ontario residential lender now requires title insurance or accepts it as the default. Lawyer's opinions are still used occasionally on commercial files or where the buyer specifically requests one, but they leave you exposed to title fraud that happens after closing.
How much does title insurance cost in Ontario?
For a typical Ontario residential resale, a one-time owner-and-lender policy usually runs CA$300 to CA$1,000, depending on the property value, the insurer, and any add-ons. The premium is a one-time charge paid at closing, with no renewals. As reference points from published 2025 Ontario residential rate sheets, a CA$500,000 home is roughly CA$440 and a CA$750,000 home is roughly CA$715 (specific quotes vary by insurer).
Cost drivers include:
Property value. Higher-value homes cost more to insure, but the premium scales slowly. A CA$2 million home is not eight times the premium of a CA$500,000 home.
Coverage type. Owner-only is the cheapest. Owner-and-lender is the standard. Some policies include enhanced or "gold" coverage for an extra fee.
Known title issues. If the search turned up a problem that needs special coverage (an unsigned consent, a missing discharge, an old encroachment), the insurer may charge an additional premium to cover it.
Commercial vs. residential. Commercial title insurance is priced separately and usually runs higher.
Compared to other closing costs (Ontario land transfer tax, Toronto's municipal land transfer tax, and legal fees), title insurance is small. It's one of the cheapest line items on the closing statement and does meaningful work protecting against post-closing title problems.
What is title fraud and how does title insurance respond?
Title fraud happens when someone uses forged identification to transfer your property to themselves or to register a mortgage in your name. The fraudster then sells the home or disappears with the loan funds, leaving you to clean up the title.
Ontario has seen a steady rise in title fraud cases since 2020. FCT, the country's largest title insurer, reported identifying CA$96 million in suspicious residential transactions in 2020, CA$231.9 million in 2021, and roughly CA$350 million in 2022. The structural reasons are simple: title is a public record, premium homes are easy to identify, and many owners go years without checking what is registered against their property. A fraudster only needs a stolen identity and the right combination of supporting documents to file a transfer.
If you have title insurance and you discover a fraudulent transfer or mortgage, your insurer is responsible for restoring your title and paying your legal costs. You may also be eligible to claim compensation from the Land Titles Assurance Fund, Ontario's statutory safety net for land registration errors, established under the Land Titles Act (applications must be made within six years of the loss). Without title insurance, you're paying lawyers out of pocket while the title is sorted out.
How do you make a title insurance claim?
You contact the insurer named on your policy, submit a written claim with supporting documents, and the insurer takes over the file from there. The exact steps vary slightly by insurer, but the framework is the same.
Find your policy. Your real estate lawyer sent it to you at closing, and most owners file it with their closing documents.
Identify the issue. Note when you discovered it, what the registered documents show, and what the loss is (a forced removal, a fraudulent charge, an outstanding work order, etc.).
Notify the insurer in writing. Use the contact information on the policy schedule. Most insurers accept email.
Send supporting documents. Title parcel register, your closing documents, photos, correspondence, and any third-party reports you have.
Let the insurer's lawyers handle it. The insurer assigns counsel, defends the claim, and pays the legal costs, up to the policy limits.
Most claims are resolved by the insurer paying to restore title, paying for legal defence, or paying out the value of the loss. Keep your policy somewhere safe with the rest of your closing documents. You only need it if something goes wrong, but when you do, having it is the difference between a covered claim and an out-of-pocket fight.
Frequently asked questions
Is title insurance required in Ontario?
Title insurance is not legally required, but almost every Ontario mortgage lender requires either title insurance or a lawyer's opinion on title. Because title insurance is usually cheaper than the searches needed to issue an opinion on title, and because it covers post-closing fraud, most Ontario lawyers recommend it on every residential file.
Does title insurance cover the cost of a new survey?
No. Title insurance can cover certain problems a survey would have revealed (like an encroachment or a setback issue), but it does not pay for a new survey. If you want a current survey of the property, you order one separately from an Ontario land surveyor. Most title insurance policies cover the underlying issue without requiring you to do that search.
Does title insurance protect against future property tax or water arrears?
A standard Ontario title insurance policy covers municipal water and property tax arrears that existed at closing but weren't disclosed. It does not cover unpaid bills or taxes that you accumulate after you become the owner. Those are your responsibility going forward, the same as any other utility.
Does title insurance transfer when I sell the home?
No. Your owner policy ends when you transfer ownership to the next buyer. The new buyer purchases their own policy. The lender policy on a paid-off mortgage ends when the mortgage is discharged.
Does title insurance cover legal fees if a neighbour sues me over the boundary?
It can, depending on the policy. If the dispute relates to an encroachment or boundary problem that existed at closing, most Ontario residential policies cover the legal defence and any settlement up to the policy limits. If the dispute arises from something you did after closing (you built a new fence in the wrong place), it is not covered.
How long does it take to buy title insurance?
Title insurance is ordered as part of closing. Your real estate lawyer requests the policy from the insurer once the title search is complete, usually one to two weeks before closing. The policy is issued on closing day and delivered to you with the rest of your closing package.
What happens if my lawyer missed something on the title search and there's no title insurance?
Without title insurance, your only remedy is to sue your lawyer for negligence and claim against their professional liability insurance (LawPRO coverage for Ontario lawyers). That is a much harder, slower, and more expensive process than filing a title insurance claim. It is the main reason almost every Ontario lawyer now recommends a policy as a matter of course.
About the author
Benjamin Berry is a co-founder and principal lawyer at Ownright. He spends most of his week on Ontario residential closings, refinances, and the title work that sits behind every real estate transaction, and writes regularly on the issues homeowners only encounter once or twice in their lives.
Ownright is an Ontario real estate law firm. We close residential purchases, sales, and refinances across the province, combining an in-house legal team with a simple digital experience so clients always know what's happening and what to do next. You can start your closing online or contact our team with any questions.
Legal references: Land Registration Reform Act, R.S.O. 1990, c. L.4 (registration of Transfers and Charges in Ontario). Land Titles Act, R.S.O. 1990, c. L.5 (Land Titles Assurance Fund compensation, Part V). Insurance Act, R.S.O. 1990, c. I.8 (regulation of title insurers in Ontario, administered by FSRA).
Important note: This article is not legal advice. No one should act, or refrain from acting, based solely on the information in this post or any linked materials without first seeking appropriate legal or professional advice.
