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Get My Free Estimate →Title insurance is not mandatory in Ontario. Most lenders require a lender’s policy, which protects the lender to roughly the mortgage amount and protects you not at all — an owner’s policy is separate. FSRA lists coverage as unknown title defects, existing liens, encroachments, survey errors and title fraud, and lists exclusions including known defects, environmental hazards, unrecorded liens and non-title issues. The policy wording adds more: risks you created or actually knew about and did not disclose are excluded, and one insurer excludes matters disclosed in a condominium status certificate. Coverage continues after you sell. FSRA and the Association of Ontario Land Surveyors openly disagree about whether it substitutes for a survey. And where title insurance is in place, the Canadian Bar Association’s guidance is that your lawyer gives a limited opinion to the insurer rather than an opinion on title to you.
Almost every Ontario buyer pays for title insurance and almost none of them read the policy. It arrives as a line on the lawyer’s statement of account somewhere between the registration fee and the software charge, and it gets approved without a question.
It is worth understanding, because it does two things people do not expect: it quietly changes what your lawyer is doing for you, and it is one of the few protections that survives after you have sold.
It is not required, and it is not one product
FSRA, which regulates insurance in Ontario, is explicit that title insurance is not mandatory. In practice most lenders require a policy, and what they require is a lender’s policy.
| Policy | Who it protects | For how much |
|---|---|---|
| Lender’s policy | The lender, and only the lender | Generally to the amount of the mortgage |
| Owner’s policy | You | Up to the policy limits |
A lender’s policy protects nobody but the lender. If your title is attacked and the mortgage gets paid out, the lender is whole and you are not. Buyers regularly believe they are covered because a title insurance charge appeared on their closing statement. Look at your own file and confirm which policy you actually have. If you bought with cash and nobody insisted, you may have neither.
What it covers
FSRA lists the covered ground as unknown title defects affecting ownership, existing liens including utilities, mortgages, property taxes and condominium charges, encroachments, survey errors, and title fraud.
The residential owner policies themselves are considerably more detailed — the one I read runs to thirty-four enumerated covered risks and carries no deductible. Two features that surprise people:
| Feature | What it means |
|---|---|
| Coverage does not end when you sell | The continuation condition in the policy I read states: “This Policy insures you forever, even after you no longer have your Title. You cannot assign this Policy to anyone else.” If a claim arises out of something that existed on the policy date, the policy is still there |
| The policy amount can grow | Policies index to increases in value. One insurer’s residential owner policy caps the increase at 200 per cent of the original amount; another states the insured amount “will increase as the value of the property increases up to a maximum of 400 per cent”. That is a real product difference worth asking your lawyer about, not an error |
What it does not cover
FSRA lists the exclusions as known title defects, environmental hazards, Native land claims, issues that only a new survey would reveal, unrecorded liens, zoning violations arising from the owner’s own changes, and non-title issues generally.
The policy wording is more pointed. The residential policy I read excludes loss from:
| Exclusion | The practical effect |
|---|---|
| Existence or violation of any law, by-law, ordinance, order, code or government regulation relating to building, zoning, land use, improvements, environmental protection or land division — except where a violation appears in the public records at the policy date | A recorded work order or property standards order is covered. An unrecorded zoning problem is not. This is why searching for outstanding orders still matters |
| Structures not built to applicable building codes, except violations disclosed in the public records or by a local authority search | Unpermitted work discovered later is generally your problem |
| Risks “created, allowed, or agreed to by you”, and risks “actually known to you, but not to us, on the Policy Date” | Knowing about a problem and not disclosing it voids coverage for it. Tell your lawyer everything you know before closing |
| Risks first affecting title after the policy date | With the important exception that title fraud after closing is a covered risk under these residential policies |
| Expropriation rights, unless notice appeared in the public records at the policy date |
One insurer’s owner policy also expressly excludes matters disclosed in a status certificate for a condominium, and matters disclosed in a survey obtained before closing. That is worth sitting with: the document you were given so you could make an informed decision becomes the reason the insurer is not liable for what it disclosed. Read the status certificate.
The survey question, where two official bodies disagree
This one I am going to present as the disagreement it is, rather than picking a side.
| Body | Position |
|---|---|
| FSRA | Survey coverage “may eliminate the need for a new up-to-date survey” and is “acceptable to most lenders as an alternative” |
| Association of Ontario Land Surveyors | Title insurance “cannot create or move boundaries nor remove legal encumbrances such as easements”. The two “are mutually exclusive products. Neither can provide nor replace the benefits of the other” |
Both are official bodies and both are describing something true. The reconciliation is that they are answering different questions. Title insurance pays money if a boundary problem turns out to exist. A survey tells you where the boundary is. If the deck, the pool or the fence is close to a line, or the property is part of a complicated assembly, AOLS’s advice to consider both is the conservative reading and I would take it.
The part nobody mentions: what happens to your lawyer’s opinion
Historically an Ontario real estate lawyer searched title and gave you an opinion on title. Where title insurance is in place, that changes.
The Canadian Bar Association’s own guidance for lawyers is that where title insurance is obtained, the lawyer’s role shifts to giving “a limited title opinion to the title insurer for the purposes of obtaining the title insurance policy”. It cautions lawyers not to provide an opinion on title where title insurance is in place, and suggests neutral phrasing — “this is what the land registry records show…” rather than “it is my opinion that…”.
So the trade is real and it is not usually explained at closing. You gain an insurer who will pay on covered risks with no deductible and no need to prove anyone was negligent. You give up a professional opinion you could have sued on. For most buyers that trade is worth it. It is still a trade, and you are entitled to know you made it.
What it costs
FSRA says only this: “The cost of residential title insurance varies based on the value of your property and the insurance company you choose.” It is a one-time premium with no renewal while you own the property.
I am not publishing a premium table, and here is why. I tried to obtain a current published Ontario residential rate schedule from every major title insurer. Two route to login-gated calculators and publish no table. One publishes a rate schedule PDF that returned a server error on every attempt. The dollar ranges you will find quoted on comparison sites cite no insurer rate schedule at all. Ask your lawyer for the actual quote for your purchase price and your insurer — that number is knowable and the internet’s version is not.
If you have a problem with a claim
FSRA sets out a three-step path: first the insurer’s own complaint officer, which should produce a final position letter; then the General Insurance OmbudService or, for a mutual insurer, the Mutual Insurance Companies OmbudService; then FSRA. FSRA targets completing 80 per cent of complaint reviews within 90 days.
Be clear about the limits of the last step. FSRA states that it cannot “settle disagreements in a contract, issue a refund or get compensation for you.” What it can do is check regulatory compliance and take action where the acts and regulations were not followed. A coverage dispute is a contract dispute, and the escalation that actually recovers money is the OmbudService or a lawyer.
Seven things people get wrong
| The belief | The position |
|---|---|
| “Title insurance is mandatory in Ontario.” | FSRA states it is not required. Most lenders require a lender’s policy, which is a different thing. |
| “I paid for title insurance, so I am covered.” | Check whether you have an owner’s policy or only a lender’s. A lender’s policy protects the lender. |
| “It covers everything wrong with the property.” | It is title insurance, not a home warranty. Environmental hazards, unrecorded liens and non-title issues are excluded. |
| “It replaces a survey.” | FSRA says survey coverage may eliminate the need for a new one; the Association of Ontario Land Surveyors says the two are mutually exclusive products. Title insurance pays for boundary problems; it does not locate boundaries. |
| “My coverage ends when I sell.” | The residential owner policy I read insures you “forever, even after you no longer have your Title”, though it cannot be assigned to the buyer. |
| “I should keep quiet about the issue I know about.” | Risks actually known to you but not to the insurer on the policy date are excluded. Concealment removes the coverage you paid for. |
| “My lawyer still gives me an opinion on title.” | Where title insurance is in place, the Canadian Bar Association’s guidance is that the lawyer gives a limited title opinion to the insurer, and cautions against providing an opinion on title to the client. |
Buying in Etobicoke and want to know what you are actually protected against?
I can tell you what to ask your lawyer before closing, and on a condominium what the status certificate discloses — which matters twice over, because a matter disclosed there may sit outside the policy. The coverage decision is your lawyer’s and your insurer’s. Knowing which questions to put to them is something I can help with at no cost.
connect@jatindua.com · 437-987-1925 · Book a free consultation
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Frequently asked questions
Is title insurance mandatory in Ontario?
No. FSRA states that title insurance is not required in Ontario. In practice most lenders require a lender’s policy as a condition of financing, which is why nearly every financed purchase involves a policy of some kind. An owner’s policy is a separate decision.
What is the difference between a lender policy and an owner policy?
A lender’s policy protects the lender, generally to the amount of the mortgage. An owner’s policy protects you, up to the policy limits. They are different contracts with different insureds. If your title is successfully attacked and the mortgage is paid out under the lender’s policy, the lender is made whole and you are not. This is the most common misunderstanding about title insurance, and the fix is to look at your own closing file and see which policy was issued.
What does title insurance actually cover?
FSRA lists unknown title defects affecting ownership, existing liens including utilities, mortgages, property taxes and condominium charges, encroachments, survey errors, and title fraud. The residential owner policy I read enumerates thirty-four covered risks and carries no deductible. It is title insurance, though, not a home warranty: it addresses ownership and the register, not the condition of the building.
What is excluded?
FSRA lists known title defects, environmental hazards, Native land claims, issues only a new survey would reveal, unrecorded liens, zoning violations arising from the owner’s own changes, and non-title issues. The policy wording adds exclusions for violations of building, zoning, land use and environmental law except where the violation appears in the public records at the policy date; structures not built to code except where disclosed in the public records or a local authority search; risks created, allowed or agreed to by you; and risks actually known to you but not to the insurer on the policy date. One insurer also excludes matters disclosed in a condominium status certificate and matters disclosed in a survey obtained before closing.
Does title insurance cover title fraud?
FSRA lists title fraud among the covered risks for a residential owner policy, and it is one of the main reasons to hold one. That coverage is a contract with an insurer, distinct from the statutory Land Titles Assurance Fund, which is a last resort available only where you cannot recover just compensation otherwise. In practice an owner with a policy claims on the policy.
Does my coverage end when I sell?
On the residential owner policy I read, no. Its continuation condition states: “This Policy insures you forever, even after you no longer have your Title. You cannot assign this Policy to anyone else.” So it protects you against a claim arising from something that existed on the policy date even after you have sold, but your buyer cannot inherit it and needs their own.
Does title insurance replace a survey?
Two official bodies disagree, and I am not going to pretend they do not. FSRA states that survey coverage “may eliminate the need for a new up-to-date survey” and is “acceptable to most lenders as an alternative”. The Association of Ontario Land Surveyors states that title insurance “cannot create or move boundaries nor remove legal encumbrances such as easements” and that the two “are mutually exclusive products. Neither can provide nor replace the benefits of the other.” Both are describing something true: title insurance pays money if a boundary problem exists, while a survey tells you where the boundary is. Where a structure sits close to a line, the surveyors’ position is the conservative one.
What does title insurance cost in Ontario?
FSRA says only that the cost “varies based on the value of your property and the insurance company you choose”, and that it is a one-time premium with no renewal while you own the property. I deliberately have not published a range: I could not obtain a current published Ontario residential rate schedule from any major insurer — two route to login-gated calculators, and the one that publishes a PDF returned a server error every time. The figures quoted on comparison sites cite no insurer rate schedule. Ask your lawyer for the actual quote.
Does having title insurance change what my lawyer does?
Yes, and this is rarely explained at closing. The Canadian Bar Association’s guidance for lawyers is that where title insurance is obtained, the lawyer’s role shifts to providing “a limited title opinion to the title insurer for the purposes of obtaining the title insurance policy”. It cautions lawyers against providing an opinion on title where title insurance is in place, and suggests neutral phrasing such as “this is what the land registry records show” rather than “it is my opinion that”. You gain an insurer who pays covered risks without a deductible and without your having to prove negligence; you give up a professional opinion you could have sued on.
Related reading
- Title fraud in Ontario: who bears the loss
- What a status certificate actually tells you before you buy a condo
- Closing costs when buying a home in Toronto
- Condo insurance in Ontario: the standard unit and the deductible chargeback
Sources
Every figure on this page traces to one of these, and each was read on 30 August 2026. Primary sources only — statute, regulation, and the government or agency that administers the rule. Where I could not verify something from a primary source, the page says so instead of guessing.
- Understanding title insurance. Financial Services Regulatory Authority of Ontario. Consumer guidance on what title insurance covers and excludes, and on owner versus lender policies. No publication date shown on the page. Accessed 30 August 2026.
- How to resolve a property and other insurance complaint. Financial Services Regulatory Authority of Ontario. Sets out the complaint path through the insurer’s complaint officer, the General Insurance OmbudService, and FSRA, and states what FSRA cannot do. Accessed 30 August 2026.
- Title insurance — Association of Ontario Land Surveyors. Association of Ontario Land Surveyors. States that title insurance and a survey “are mutually exclusive products” and that neither can provide nor replace the benefits of the other. No publication date shown. Accessed 30 August 2026.
- Residential owner policy — Stewart Title. Stewart Title Guaranty Company. States that the insured amount increases with property value up to a maximum of 400 per cent, and that matters disclosed in a status certificate or in a survey obtained before closing are excluded. No publication date shown. Accessed 30 August 2026.
- Residential title insurance — Chicago Title Canada. Chicago Title Insurance Company Canada, page modified 15 May 2025. States that an owner policy remains in effect for as long as the owner retains an interest. No premium figures are published. Accessed 30 August 2026.
- Land Titles Act, R.S.O. 1990, c. L.5 — e-Laws consolidation. Official Ontario consolidation. Section 1 definitions of “fraudulent instrument” and “fraudulent person”, and sections 57, 78 and 155 to 156, each read in full on 30 August 2026. Note that s. 57(4) was substantially rewritten by 2006, c. 34 and amended again by 2024, c. 28 — older quotations of it circulating online are obsolete. Accessed 30 August 2026.
About the author — Jatin Dua, Etobicoke real estate agent
I’m the Broker of Record at RE/MAX Quantum Realty, 799 The Queensway in Etobicoke. I write these pages the same way I work a file: read the primary source, quote it, date it, and say plainly where the source is silent or where two sources disagree. If a figure on this page has no citation beside it, that is a mistake and I want to hear about it.
I work with buyers, sellers, renters and investors across Etobicoke, Mimico, Humber Bay Shores, New Toronto, Long Branch, Alderwood and Stonegate–Queensway. connect@jatindua.com or 437-987-1925.