Title insurance: what it can protect—and what it cannot
Title is the legal ownership interest in a property. Title insurance may help with certain covered losses related to that ownership or the lender’s registered security. It is a policy with terms, not a guarantee that no title problem can arise.
Owner and lender policies are different
A lender policy insures the lender’s interest and enforceability of its security within the policy. It does not automatically protect your equity. An owner policy covers the owner’s insured interest, often for as long as the policy terms provide. Ask whether both are being arranged and what each costs.
Examples of possible coverage
Depending on the policy, covered losses may involve certain title fraud, unknown defects, encroachments, access issues or specified non-title matters. Building-permit and zoning issues are not universally covered. A known issue may be excluded or need specific underwriting. Ask for the actual policy terms rather than relying on a list of brochure benefits.
- Are there exclusions related to this property?
- What fraud and legal-defence protection is included?
- Are any known concerns specifically covered in writing?
- What duties do I have if I discover a problem?
What it does not do
Title insurance does not stop a fraudulent registration from being attempted and does not make additional registrations impossible. It does not replace a title search, competent legal advice, a physical home inspection or property insurance. It also does not automatically fix all construction defects or make unpermitted work acceptable.
Cost, timing and lender requirements
A policy commonly involves a one-time premium paid as part of closing, with pricing based on the insurer, property value and coverage. Owner coverage may be offered alongside lender coverage, but any discount depends on the insurer. Some lenders require title insurance; others may accept different protections. Your BC lawyer or notary can explain what the transaction needs and the options available.
After closing
Keep the policy and legal closing papers where you can find them. If you discover a possible title issue, contact your legal adviser and follow the insurer’s claims instructions promptly. Avoid assuming that paying to fix a problem first will automatically be reimbursed. If payment instructions or ownership notices seem suspicious, verify them through trusted channels.
- Ask for the policy, not just a receipt for its premium.
- Make sure the insured names and property details are correct.
- Know how to notify the insurer and which deadlines apply.
Let’s make this personal
Tell Matt what matters most to you, and what feels unclear. We can help you work through the mortgage side of the decision and coordinate the next steps with your other professionals. Email matt.parker@indimortgage.ca or call 778.897.2554.
General Canadian mortgage guidance with British Columbia context; reviewed October 16, 2026. Your lender’s written requirements, mortgage contract and professional legal or tax advice take priority.