How does title insurance protect me against real estate fraud in Ontario?

Title insurance provides one of the most practical protections against real estate fraud in Ontario, covering you for losses that result from someone fraudulently dealing with your property without your knowledge. The most common scenarios include: a fraudster who impersonates you and registers a forged mortgage against your home and then takes the loan proceeds; or someone who transfers your property to themselves or a third party using false identity documents, then sells or mortgages it.

If you have an owner's title insurance policy and become the victim of title fraud, the insurer typically steps in to defend your ownership — retaining lawyers to restore your title in court if necessary and covering legal costs. If you suffer an unrecoverable financial loss (for example, you are on the hook for a fraudulent mortgage), the policy compensates you up to the insured value.

Importantly, owner's title insurance protects you not just at the time of purchase but for the entire time you own your home. A fraudulent transaction can happen years after you buy, not only at the time of closing, and the owner's policy covers those ongoing risks. This is a meaningful distinction from the lender's policy, which only protects the lender. Homeowners who are mortgage-free and long-time owners — who may think they need no protection — are actually at higher fraud risk in some respects, because their properties are attractive targets for fraudsters.