5 Key Facts to Know about Residential Title Insurance
- Typically, you purchase residential title insurance when you buy your home.
- You can buy a residential title insurance policy at any time while you own a property.
- Talk to your lawyer or insurance representative to understand your coverage options.
- A one-time premium covers the insured property as long as you own it.
- If your property ownership passes to a spouse, child or heir, it may be possible to extend your title insurance to them.
What Risks Will It Cover?
Residential title insurance can protect you against issues that could affect your ability to sell, lease or mortgage your property. It can provide coverage for the following:
- An unforeseen defect in your title ownership.
- Negligence or errors made by your lawyer relating to title risks.
- Unpaid utilities, mortgages, taxes or condo/strata maintenance fees – these are known as liens.
- Fraud, survey or records errors.
- A pre-existing outbuilding that must be removed because it encroaches on a neighbouring property.
- The gap period between when a property purchase is finalized or closed and when the title is officially registered with the government.
As with all forms of insurance, there is much to consider when you purchase title coverage. When you buy a home and insure your property, title insurance can help you manage risk. Consult your lawyer or insurance representative to learn more about the value of title insurance.
Understanding Title Insurance