Introduction 

Buying a home in Ontario is exciting—but it comes with legal risks many buyers overlook. One essential safeguard is title insurance—a one-time, low-cost policy that protects you from hidden issues like title defects, zoning violations, and title fraud. 

In this post, we break down what title insurance is, what it covers (and doesn’t), how much it costs, and share a real case study showing how one family avoided $24,000 in losses. 

What Is Title Insurance? 

Title insurance is a type of indemnity insurance that protects homeowners and lenders from financial loss due to title-related issues. In simple terms, it protects your legal right to own and use the property. 

There are two main types in Ontario: 

• Lender’s Title Insurance: Mandatory for most mortgages; protects the lender. 

• Owner’s Title Insurance: Optional but highly recommended; protects the homeowner’s interests. 

• One-time cost 

• No renewals 

• Coverage lasts as long as you own the home 

Case Study: How the Singh Family Saved Over $24,000 

Location: Brampton, Ontario 
Home Type: Detached 3-bedroom with finished basement 
Purchase Price: $820,000 
Title Insurance Premium: $850 (Owner’s Policy) 

The Problem 

Six months after moving in, the Singhs received a notice from the City of Brampton: the basement suite was built without permits. They had two choices: 

• Decommission the basement 

• Bring it up to code — at an estimated cost of $22,000–$25,000 

The basement was supposed to generate rental income. Without it, their financial plan unraveled. 

The Solution 

Thanks to their owner’s title insurance, the Singhs filed a claim. The insurer: 

• Paid for legal representation with the city 

• Covered construction costs to meet code 

• Compensated them for lost rental income 

Total reimbursement: $24,300 
All for a one-time fee of $850 

What Does Title Insurance Cover in Ontario? 

Coverage varies by provider, but most owner’s policies include protection against: 

✔ Unknown Title Defects 

• Errors in property records 

• Forged documents 

• Undisclosed heirs or spouses 

✔ Pre-existing Liens 

• Unpaid taxes or utilities 

• Contractor liens from previous owners 

✔ Zoning & Building Code Violations 

• Structures built without permits 

• Code violations discovered after closing 

✔ Encroachments & Easements 

• Fences or buildings crossing boundaries 

• Shared walls or disputed driveways 

✔ Lack of Legal Access 

• No legal right-of-way to a public road 

✔ Title Fraud 

• Someone impersonating you to sell or refinance your property 

• Fraudulent discharge of a mortgage 

✔ Survey or Boundary Errors 

• Discrepancies in historical surveys 

✔ Forced Removal of Structures 

• If a city orders you to remove part of your home 

What Title Insurance Does Not Cover 

It’s just as important to understand the limits. Title insurance typically does not cover: 

• Known problems at the time of purchase 

• Environmental hazards (e.g. radon, soil contamination) 

• Property condition (get a home inspection!) 

• Zoning changes that occur after closing 

• Issues arising after the date of policy issuance 

• Native land claims 

How Much Does Title Insurance Cost in Ontario? 

Title insurance is a one-time premium based on property value: 

Home Value	Typical Premium
$500,000	$500–$700
$1,000,000	$800–$1,200

No monthly or annual renewals. Coverage lasts for the life of ownership. 

Why You Shouldn’t Skip Title Insurance 

Title issues are rare—but when they happen, the costs are high. 

• Protects your legal ownership 

• Shields you from hidden costs and lawsuits 

• Offers peace of mind throughout your ownership 

For just a few hundred dollars, title insurance protects what is likely your largest asset. 

Where to Get Title Insurance in Ontario 

Title insurance is arranged by your real estate lawyer during closing. Top providers include: 

• FCT (First Canadian Title) 

• Stewart Title 

• Chicago Title Insurance Company Canada 

• TitlePLUS (by LAWPRO) 

Each provider’s policy terms vary—review them with your lawyer. 

Final Thoughts 

The Singh family’s story is a powerful reminder of how title insurance can protect you from unexpected legal and financial issues. In today’s real estate landscape—where title fraud and permit issues are on the rise—title insurance is more important than ever. 

Need Help? 

Have questions about buying property or getting title insurance in Ontario? 
Contact Philer.ai — your digital legal partner in real estate. 

Protect your home. Protect your future. 
Ask your lawyer about title insurance today.