What common things are NOT covered by title insurance in Ontario?
Understanding title insurance exclusions is just as important as knowing what is covered. Ontario title insurance policies generally do NOT cover the following:
Environmental contamination — if the land has underground oil tanks, contaminated soil, or other environmental problems, title insurance does not pay for the cleanup. You need separate environmental due diligence or a specific environmental indemnity.
Physical condition of the building — roof leaks, foundation problems, mould, outdated wiring, and other building defects are not title issues. A home inspection covers these.
Issues you knew about before closing — title insurance protects against unknown, hidden risks. If a defect was disclosed to you or was apparent before you signed the purchase agreement, the insurer will typically exclude it.
Future zoning changes or rezoning by the municipality — title insurance covers existing structural non-compliance, not the risk that the municipality will rezone your property or change bylaws in the future.
Disputes with neighbours that are not recorded on title — a verbal agreement with a neighbour that has not been formalized on title is generally not covered.
Native land claims or treaty rights — in some regions these can affect title and are often specifically excluded or limited in standard residential policies.
Key takeaways
- Environmental contamination and physical building defects are not covered by title insurance.
- Known defects disclosed before closing are excluded — only unknown risks are covered.
- Future zoning changes and municipal rezoning decisions are not covered.
- Some policies exclude or limit coverage for Indigenous land claims or treaty rights.