Do I Need Title Insurance When Buying a Home?

Ian Keay

May 29, 2026

But my lawyer searches title, right?

Buying a home is one of the largest financial commitments most people will ever make. During the closing process, your lawyer will review documents, explain closing costs and may recommend that you title insure your purchase.

 

A common question from clients is: If my lawyer is already checking title, why do I need title insurance? The answer is that title insurance protects against certain title problems that even the most careful title search may not uncover.

 

1.   What Is Title Insurance?

 

Title insurance is a policy that protects both homeowners and mortgage lenders against losses arising from title problems the could affect ownership of a property. Unlike car or home insurance, which protects against future events, title insurance primarily protects against issues affecting title that exist at or before closing and that are unknown at the time the property is purchased. The policy is purchased at the time of closing, with only a one-time premium paid, and generally remains in place for as long as you own the property.

 

2.   What Does Title Insurance Cover?

 

While coverage varies depending on the insurer and policy, title insurance commonly protects against:

 

  • Real estate fraud, including fraudulent mortgages or transfers of title
  • Errors in land registry records
  • Certain undisclosed liens, encumbrances or claims
  • Boundary disputes and survey problems
  • Encroachments; i.e. structures like a fence, garage or shed crossing over a property line
  • Unpaid property taxes or certain utility charges that were not discovered before closing
  • Missing signatures, forged documents, or other defects affecting ownership

 

Many policies will also cover legal fees incurred in defending your ownership rights if a covered issue arises.

 

Title insurance does not cover every problem that may arise with a property. Coverage is subject to the terms, conditions and exclusions contained in the policy. For example, issues that are known to the purchaser before closing or matters specifically excluded by the policy may not be covered.

 

3.   Doesn't My Lawyer Already Search the Title?

 

Yes. Your lawyer will always search title – it is an important part of a real estate transaction. Your lawyer reviews title documents and municipal documents to identify issues that may affect a buyer’s rights. However, a title search can only reveal information that appears in the public record. Some problems may not be discoverable through a standard title search, including:

 

  • Forged or fraudulent documents
  • Administrative or recording errors in land registry records
  • Survey inaccuracies
  • Certain unregistered interests affecting the property

 

Title insurance affords protection against these hidden risks. In many cases, title insurance can also make the closing process more efficient by allowing certain minor title issues to be insured rather than requiring lengthy and expensive corrective work before closing.

 

4.   Is Title Insurance Required?

 

Title insurance is not required by law. However, if you are obtaining a mortgage, your lender will almost always require title insurance to protect its interest in the property. It is common for buyers to purchase an owner's title insurance policy at the same time as the purchase of a mortgagor’s title policy so that both the lender and the homeowner are protected.

 

5.   What does Title Insurance Cost?

 

The cost of title insurance depends on the value of the property and the type of coverage being purchased. For most residential purchases, the premium is usually a few hundred dollars and is paid once at closing. There are no annual premiums or renewal fees – only a one-time, up-front cost. Be aware that when an owner refinances their property, a new lender can demand a new mortgagor’s title policy.

 

6.   Is Title Insurance Worth It?

 

Title insurance provides peace of mind at a modest cost. Although serious title problems are uncommon, when they do occur they can be expensive and time-consuming to resolve. A title insurance policy can help protect you from unexpected expenses and losses arising from covered title issues.

 

7.   Final Thoughts

 

A title search and title insurance serve different purposes. Your lawyer's title search helps identify known issues before closing, while title insurance protects against certain risks that may not be discovered until after you take ownership of the property. If you have questions about title insurance, speak with your real estate lawyer. They can explain the coverage available and help you decide whether it makes sense for your purchase.

 

-      Ian Keay

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In the Will, the lawyer prepares a clause that causes the share of the estate destined for the disabled child to be placed in the Henson Trust rather than go directly to the disabled child. By doing so, the parent is taking the correct steps to protect their disabled child’s qualification for their Benefits. 6. Important Considerations i. ODSP in particular has rules about income / gifts received during a disabled person’s qualification – not following the rules will result in disqualification ii. Whomever is appointed trustee must be reliable – a poorly managed Henson Trust can result in all kinds of different problems, not the least of which is disqualification from the Benefits iii. Registered Disability Savings Plan (RDSP) is an investment that could be used by the Trustee – but is not typically used instead of a Henson Trust iv. If a person has a family member who: a. receives ODSP (or might in the future) b. is or could be financially vulnerable (i.e. susceptible to influence or exploitation) c. makes poor / questionable financial decisions d. requires support then a Henson Trust may make sense in those circumstances. 7. Final Thoughts on Henson Trusts A Henson Trust is about more than the money. It’s created by someone who wants to provide an inheritance to a vulnerable person in order to: i. preserve dignity ii. provide stability iii. provide necessary supports iv. avoid interruption of government supports v. ensure that the support provided endures for years and decades The best time to set up a Henson Trust is before the crisis occurs – you do not want to die and leave your executors / beneficiaries scrambling. A well-crafted estate plan will protect both your estate assets and your vulnerable loved one. - Ian Keay