How to Make a Title Insurance Claim in Ontario: A Step-by-Step Guide

Most Ontario homeowners purchase title insurance at closing — their lawyer recommends it, the premium is modest, and then the policy gets filed in a drawer. Years later, when a title problem surfaces, many policyholders are unsure how a title insurance claim actually works or whether what they have experienced even qualifies.

This article walks through the typical title insurance claims process in Ontario — what events trigger coverage, how to notify your insurer, what to expect during the investigation, and how claims are resolved.

What Is Title Insurance?

Title insurance is a one-time-premium insurance product that protects the insured — typically the homeowner and any mortgage lender — against financial losses arising from title-related problems affecting the property. Unlike most insurance policies that cover future events, title insurance primarily covers losses arising from past events (defects, fraud, errors) that were not known at the time of purchase.

Ontario homeowners' policies are typically issued by a small number of major title insurers. Your policy will be in the name of the individual insured and will specify coverage amounts, exclusions, and the claims process.

Events That Typically Trigger a Claim

Title insurance coverage varies by policy, but most residential policies in Ontario cover losses arising from:

Fraud and Forgery

• A forged instrument (mortgage, transfer) registered against your title by a fraudster
• Someone impersonating you to deal with your property
• A prior owner's fraudulent dealing that was not detected before closing

Survey and Physical Issues

• An encroachment by your structure onto a neighbour's land, or vice versa
• A structure violating a building setback that was not detected at closing
• A gap between your survey and what the registered title describes

Prior Encumbrances Not Disclosed at Closing

• A prior mortgage that was not discharged
• A lien (construction, tax, judgment) not cleared before your purchase closed
• An undisclosed easement or restrictive covenant affecting your use of the property

Zoning and Work-Order Issues

• An existing structure that was built without a required permit
• An outstanding work order or building code violation that you inherited

Errors in the Public Record

• Errors in the provincial land registry affecting your ownership
• Incorrect legal descriptions

Note: Title insurance does not cover everything. Common exclusions include environmental contamination, physical damage to the building, matters you knew about before closing and did not disclose, and fraud that you or a family member committed.

Step 1: Identify the Potential Claim Event

Before calling your insurer, gather facts:

• What is the specific problem? (A registered lien, a fraud, a survey discrepancy, an unpermitted structure)
• When did you become aware of it?
• How did you become aware? (Lawyer's letter, municipality notice, neighbour's complaint, mortgage enforcement action)
• Do you have documents? (Survey, notice, registered instrument, court documents)

Having a clear picture of the problem before your first call with the insurer will move things along faster.

Step 2: Locate Your Title Insurance Policy

Your policy was issued at the time of your purchase closing. It should be in your closing documents binder or with your lawyer's file. Key information to have on hand:

• Policy number
• Name of the title insurer
• Insured amount (usually the purchase price)
• Effective date

If you cannot find your policy, contact the lawyer who handled your purchase — they should have a copy in their file, or can help you request a duplicate from the insurer.

Step 3: Notify the Insurer Promptly

Timeliness matters. Title insurance policies typically require you to notify the insurer as soon as you discover a loss or potential claim. Delayed notification can affect your coverage. Do not wait to see if the problem resolves itself before contacting your insurer.

Call or write to the insurer's claims department. Most major title insurers have a toll-free claims line and an online claims portal. You will be assigned a claims representative.

Information to provide at first notice:

• Your policy details
• A description of the problem
• Any documents you have received (court documents, notices, correspondence)
• Contact information for your lawyer, if you have retained one

Step 4: The Insurer's Investigation

The claims representative will investigate the claim. This typically involves:

• Reviewing your policy and the chain of title
• Requesting documents from you, your lawyer, and the Land Registry
• Potentially retaining their own counsel to assess the legal validity of the claim
• Determining whether the loss falls within your policy's coverage or an exclusion applies

You have the right to ask questions. Ask the claims representative for a timeline, what they are investigating, and what documentation they need from you.

Step 5: Claim Resolution

Claims are resolved in one of several ways:

Direct Payment (Indemnity)

If the loss is quantifiable and coverage is confirmed, the insurer may pay you directly for the financial loss. For example, if a prior owner's unpaid tax sale resulted in a loss of value, the insurer might compensate you for that loss up to your policy limit.

Title Curative Action (Fix the Title)

In many cases — particularly fraud, errors, or defective registrations — the insurer will retain a lawyer to fix the title rather than simply pay a claim. This might involve:

• Registering a court order discharging a fraudulent mortgage
• Clearing an erroneously registered encumbrance
• Obtaining a court declaration of title

Title curative action is often preferred because it restores your property to the position it should have been in, rather than simply compensating you for the loss.

Negotiated Resolution

In some cases the insurer and the adverse party negotiate a settlement — for example, buying out a competing claim or paying an adverse party to discharge a problematic instrument.

Step 6: Dispute Resolution if Your Claim Is Denied

If the insurer denies your claim — or offers a resolution you believe is inadequate — your options include:

1. Internal appeal. Request a formal review by the insurer's claims manager.
2. OmbudService for Life & Health Insurance (OLHI) / General Insurance OmbudService (GIO). Title insurance falls under property and casualty insurance in Ontario. The relevant dispute resolution body can assist in mediating disagreements with your insurer.
3. Legal action. In egregious cases, you may have the right to sue the insurer for wrongful denial of a valid claim. Consult a lawyer.

Frequently asked questions