What is title insurance and do I need it when buying a home in Alberta?

This answer covers the law of Alberta.

No, title insurance is not required by the standard Alberta residential purchase contract, which does require a Real Property Report. Your lender or lawyer may still recommend it, so it helps to know what it does and what it does not do.

Title insurance is protection against problems with the title or certificate of ownership, such as breaches of local bylaws and liens from contractors who weren't paid. It does not take the place of a Real Property Report. Who the policy protects matters: a lender's policy protects only the lender, while an owner's policy can cover some non-title issues such as encroachments. So a policy arranged for your lender does not by itself protect you, and it is fair to ask what each policy covers.

Cost depends on the insurer, the property and the coverage, so ask for a written quote before you decide. Coverage and exclusions vary by policy, so have your lawyer explain the wording and tell you whether an owner's policy makes sense for your purchase. Whether it is worth having depends on the property, what your lender asks for and how much risk you are comfortable with, so it is worth confirming with a lawyer before closing.