Do I Need New Title Insurance When Adding Someone to Title?

You own your home and want to add a spouse, partner or adult child to the title. You remember buying title insurance when you purchased and wonder whether it still protects everyone, or whether you must buy a new policy.

There is no one-line answer, because it turns on the wording of your own policy. This article explains what to ask, what else changes when title changes, and how to get the right advice before you sign.

What title insurance generally does

Title insurance is a policy you may have bought when you purchased your home. What it covers, and who is insured under it, depends on the wording of your own policy.

Because it protects named insureds and the policy has its own terms and exclusions, adding a new owner raises a fair question: is the new person an insured, or only the original owner? The answer is in your policy documents, and your insurer can confirm it in writing.

The question to ask your insurer

Whether your insurer needs to be told about a family transfer, and what it will do about coverage, depends on the insurer and your policy. Practices differ between insurers and policies, and a general article cannot tell you which applies to yours. Ask the insurer directly and keep the reply.

• Is the new owner covered automatically, or only after a written endorsement?
• Does the transfer need to be reported to the insurer before it is registered?
• Does coverage change if the original owner dies or the new owner sells?
• Are there exclusions for transfers that involve no payment?
• Would a new policy offer better protection, and at what cost?

Your lawyer will also be able to review the policy and tell you whether the family transfer affects it.

Adding a name is a registered transfer

Adding an owner is not just a paperwork update. It requires a transfer that changes who is on title. Only authorized Teraview account holders and their registered users can create and submit documents in Ontario's electronic land registration system, and authorized groups include lawyers, conveyancers and financial institutions. Registrations are entered by authorized users and then reviewed and certified by ServiceOntario.

If you have a mortgage, your lender's terms may also matter, since a change in ownership could require the lender's consent. Check your mortgage documents or ask the lender before you transfer.

Other issues that come up when you add someone

The last row matters for parents adding a child. Once someone is on title, they have their own legal rights in the property. If the relationship later breaks down, the home can become the subject of a dispute. Adding a name is often easy to do and hard to undo, so think about creditors, a child's marriage breakdown and your own estate plan.

What to do next

• Find your title insurance policy and read who is named as insured.
• Call the insurer and ask in writing whether the new owner is covered.
• Check your mortgage for consent requirements.
• Ask a lawyer how the transfer will be reported for land transfer tax, especially if there is a mortgage.
• Decide whether the new owner will hold as joint tenant or tenant in common.
• Consider your estate plan and what happens if the relationship changes.
• Keep copies of everything registered.

A lawyer can coordinate the transfer, the tax reporting and the insurance question so nothing is missed.

Frequently asked questions