What it covers, what it doesn't, and how to decide — buying, refinancing, or already an owner.
Who this is for: Ontario buyers, owners, and people refinancing who want to understand title insurance well enough to make a confident decision. What you'll get: a plain-language explainer, a side-by-side of what's covered vs. not, the difference between owner and lender policies, the "do I still need it if I have a survey?" question answered, and a simple decision tree.
⚖️ This is a general guide, not legal advice. It can't account for your specific situation. Use it to get oriented, then confirm the details with a licensed Ontario lawyer.
What title insurance is
Title is your legal ownership of the property. Title insurance is a policy that protects you (and/or your lender) against certain problems with that ownership — things that may already exist when you buy but only surface later, plus some risks that arise afterward, like title fraud.
Two features make it different from most insurance:
- It's a one-time premium. You pay once, usually at closing, and the owner's policy lasts as long as you own the property (and, in many cases, while your estate holds it). There's no monthly or annual renewal.
- It looks backward and forward. It can cover defects that existed before you bought (an old lien, a survey problem) and certain events after you buy (someone fraudulently transferring or mortgaging your home).
💡 Tip: In modern Ontario residential deals, title insurance has largely replaced the old practice of always obtaining a new survey and a long list of municipal searches. It's now a standard, expected part of most purchases and refinances.
What it covers vs. what it doesn't
Coverage varies by policy and insurer, so treat this as a general guide and read your actual policy. But typically:
| ✅ Commonly covered | ❌ Commonly not covered |
|---|---|
| Title fraud — someone forges documents to sell or mortgage your home | Known defects you were already aware of and accepted |
| Unknown liens or encumbrances registered against title | Environmental problems (e.g., contamination) |
| Survey/boundary issues and certain zoning non-compliance | Changes in market value of the property |
| Encroachments (a structure over a boundary line) | Issues created by you after the policy date |
| Forced removal of a structure due to a title/zoning defect | Matters specifically excluded in the policy |
| Certain municipal work orders and unpaid charges existing at closing | Problems a survey or policy expressly carves out |
| Some expenses to defend your title | Native land claims and other named exclusions (varies) |
⚠️ Watch out: Title insurance is not home insurance and not a home warranty. It does not cover fire, flood damage, or the condition of the roof and furnace. It protects your ownership, not the building's physical state.
Owner's policy vs. lender's policy
There are two distinct policies, and they protect different people:
| Owner's policy | Lender's policy | |
|---|---|---|
| Protects | You, the owner | Your mortgage lender |
| Coverage amount | Generally tied to the property's value | Tied to the mortgage amount |
| Lasts | As long as you own (and often your estate) | Until the mortgage is paid off |
| When required | Optional, but strongly recommended on purchase | Usually required by the lender when you get a mortgage |
The key point: a lender's policy protects only the lender. If you get a mortgage, your lender will typically require a lender's policy — but that does nothing for you personally. To protect your equity and ownership (including against title fraud), you need your own owner's policy. Buying both at the same time is usually inexpensive because they're issued together.
💡 Tip: When refinancing, your new lender will generally want a new lender's policy. If you never bought an owner's policy when you purchased, a refinance is a sensible moment to add one for yourself.
"I have a survey — do I still need title insurance?"
This is the most common question. Usually, yes — you still want it, for several reasons:
- A survey shows the property's boundaries and structures as of the date it was made. If it's old, things may have changed (a neighbour's fence or addition encroaching, a new structure built without permits).
- A survey says nothing about title fraud, liens, or many zoning/work-order issues — title insurance can.
- Title insurance can cover survey/boundary problems without you having to obtain a new (and increasingly expensive) survey at all.
So a survey and title insurance solve different problems. Having a good, current survey is great — but it doesn't replace the protection a policy gives you against fraud, liens, and defects you can't see.
💡 Tip: If you don't have a current survey, title insurance is often the practical way to close without ordering one. If you do have one, the policy still adds protections the survey can't.
A simple decision tree
Use your situation to find your path. (When in doubt, ask your lawyer — these are general defaults.)
If you're BUYING a property:
- Getting a mortgage? → Your lender will require a lender's policy. Add an owner's policy for yourself at the same time → usually a clear yes.
- Paying all cash, no mortgage? → No lender policy needed, but an owner's policy still protects you against fraud, liens, and defects → strongly recommended.
If you're REFINANCING:
- Your new lender will generally require a lender's policy → yes for the lender.
- Don't already have an owner's policy? → Consider adding one for yourself while everything's open → recommended.
If you're an EXISTING OWNER with no policy:
- Worried about title fraud (a growing concern), or you have an older property with uncertain history? → You can often buy a standalone owner's policy at any time → worth considering.
- Have an older owner's policy already? → It typically continues for as long as you own — confirm it's still in force.
⚠️ Watch out — title fraud: Fraudsters target homes with significant equity and absentee or elderly owners, fraudulently selling or re-mortgaging them. An owner's title insurance policy is one of the most effective protections against the financial loss from this. It's a strong reason existing owners without a policy may want one.
Questions to ask yourself (and your lawyer)
- Am I getting an owner's policy, a lender's policy, or both — and do I understand who each protects?
- What is the coverage amount, and is it tied to my property's value (owner) or my mortgage (lender)?
- What are the specific exclusions in this policy?
- Does the policy cover title fraud that happens after closing?
- If I have a survey, what does the policy add that the survey doesn't?
- If I'm an existing owner, do I already have a policy from when I bought — and is it still in force?
- Is the one-time premium included in my closing-cost estimate?
💡 Tip: Ask your lawyer for the premium quote as part of your closing costs. Because it's paid once and the owner's policy lasts the life of your ownership, it's often modest relative to the protection it provides — but confirm the actual figure; premiums vary by insurer and property value.
How Treadstone Law can help
Title insurance is a small decision with long consequences, and it's easy to end up with a lender-only policy that protects your bank but not you. Treadstone Law explains both policies in plain language, arranges the right coverage for your purchase or refinance, and includes it in a flat-fee closing — with online intake and all-province virtual service.
- We make sure you get an owner's policy, not just the lender's.
- Flat fees with the premium spelled out in your estimate.
- Start online at treadstonelaw.ca/start-file from anywhere in Ontario.
Learn more at treadstonelaw.ca/real-estate, see treadstonelaw.ca/pricing, or begin at treadstonelaw.ca/start-file. Want to talk it through? Call 1-844-900-1070.
This is not legal advice
This guide is general information, not legal advice. Reading it does not create a lawyer-client relationship. Ontario laws, tax rates, and government programs change, and how the law applies depends on your specific facts. For advice about your situation, speak with a licensed Ontario lawyer. Treadstone Law is licensed by the Law Society of Ontario — reach us at 1-844-900-1070 or start a file online.