What Is Title Insurance and Is It Worth It?

Of all the line items on your closing statement, title insurance is the one buyers understand the least — and it's also one of the cheapest. For a single payment of roughly $250 to $500, it protects the thing you're actually buying: clear, undisputed ownership of your home. Here's what it covers, what it doesn't, and why nearly every Ontario lawyer recommends it.

Key takeaways

• Title insurance is a one-time policy (about $250–$500) that protects your legal ownership of the property.
• It covers title fraud, unknown liens, survey/boundary issues, and certain title defects.
• Unlike most insurance, you pay once and you're covered for as long as you own the home.
• It protects you, not the lender — though lenders often require a policy too.
• It does not replace home (property) insurance, which covers the building and your belongings.

What is title insurance?

'Title' is the legal right to own and use your property. Title insurance is a policy that protects that right against problems that existed before you bought — and against certain risks that arise afterward, like fraud. If a hidden defect surfaces years later, the insurer covers the legal costs and losses needed to defend or restore your ownership.

It's arranged by your real estate lawyer at closing and appears as a small line on your closing-costs breakdown.

What does it cover?

A typical owner's title insurance policy protects you against issues that a routine title search might miss or that simply can't be discovered in advance:

• Title fraud — someone fraudulently transferring or mortgaging your property.
• Unknown liens or arrears — unpaid property taxes, utilities or contractor liens left by a previous owner.
• Survey and boundary issues — encroachments, fence-line disputes, or a structure built without the right permits.
• Title defects — errors in the public record or gaps in the chain of ownership.
• Forgery and identity issues affecting prior transfers.

Two kinds of policy

An owner's policy protects you, the homeowner. A lender's policy protects your mortgage lender's interest. Lenders usually require their own policy; most lawyers recommend you also get the owner's policy to protect yourself.

What it costs — and why it's worth it

Title insurance is a one-time premium of roughly $250 to $500, paid once at closing. There's no annual renewal — coverage lasts as long as you own the home. Compared with the cost of fighting a fraud claim or clearing an unexpected lien, it's one of the cheapest forms of protection a homeowner can buy.

Fold it into your full budget with the closing cost calculator — it sits alongside legal fees and land transfer tax.

What title insurance does NOT cover

Title insurance protects your ownership — not the physical home. It does not replace:

• Home (property) insurance, which covers fire, water damage, theft and liability.
• Problems you knew about and accepted before closing.
• Future zoning changes or municipal decisions made after you bought.
• General wear and tear or maintenance issues — that's what a home inspection is for.

You still need home insurance

Title insurance and home insurance are completely different products. Lenders require home insurance before they'll advance your mortgage, so line both up before closing.

How HOMEH helps you save elsewhere

Title insurance is too cheap and too valuable to skip. Where you can actually move the needle on costs is commission.

The industry's highest Cashback Rebate

HOMEH gives eligible buyers the industry's highest Cashback Rebate — money that easily covers title insurance, your lawyer, and the rest of your closing costs. Sellers list for 1%, or free when they also buy with HOMEH within 6 months, or $395 + HST with a Mere Posting. Estimate yours with the cashback calculator.