• Melanie Evans

What is Title Insurance? Do I Need It When Buying a Waterloo Region Home?



When you buy a house in Waterloo Region, you're suddenly drowning in information—property taxes, mortgages, lawyer fees, home insurance, and so on. You expected a lot of new obligations, but having them all at once might be daunting. One extra thing on your plate, such as the option of purchasing title insurance, is the last thing you need.


What exactly is title insurance? Do you actually require it? Is it worthwhile to spend the extra money on this optional insurance? This is all what we are going to take a closer look at here today.


What is Title Insurance?


The former owner will sign the deed over to you when you buy a house. This deed is sometimes referred to as the title. You now have legal ownership of the property if you own the title.


If a loss occurs related to the ownership, registration, or transfer of the deed, title insurance can help you out. Some situations that title insurance covers include:


  • issues with ownership of the property

  • existing debts or liens against the property (unpaid taxes, fees, etc.)

  • fraud related to land ownership

  • errors in property assessment, such as boundaries and surveys

  • issues that affect the potential sale of the property in the future


Title insurance does not cover any of the following: any known problems with the title


  • environmental issues

  • claims on the land by Indigenous people

  • additions to the property completed by you

  • issues that are only discoverable upon a new inspection of the property

  • problems existing outside the public record



Suppose that some flaws in the property could not have been discovered prior to the sale. In that instance, title insurance may be able to assist with the cost of the repairs.


You should be aware, however, that title insurance is not a substitute for property insurance. Only concerns connected to the property's ownership are covered by title insurance, not the property itself.


How Much Does Title Insurance Cost?


The idea of knowingly paying an additional cost while buying a home can be daunting. Buying a home comes with a lot of costs, and the last thing you want to do is pay for something you don't have to. So, how much does title insurance cost in the first place?


Title insurance costs vary depending on the size and value of your home. It can, however, cost as little as $250. A bonus is that you only have to pay the premium once: title insurance is a one-time fee that lasts for the duration of your ownership of the property.


Another benefit of title insurance is that it can be passed on to your spouse, children, or heirs. This will save your loved ones a lot of time, money, and headaches because they will have legal confirmation of the property's ownership.


Do I Really Need Title Insurance on My Waterloo Region Home?


Title insurance is not a requirement, but it does cover some key areas:


  • Comprehensive coverage – this coverage covers everything related to any losses related to property ownership.

  • Gap coverage – covers the title for the time between the home purchase being closed and when ownership is registered with the Ontario land registration system.

  • Survey coverage – If you purchase survey coverage, you may not need to have your property surveyed again after your purchase.

  • Legal coverage – If the ownership of your home needs requires defending in court, this will cover most of the legal expenses, depending on the policy you have.


It IS OK to Wait to Buy Title Insurance


The process of buying a home can be stressful. As a result, when signing all the paperwork, paying for title insurance may be hard to consider.


The good news is that title insurance can be purchased after your house has been purchased. While the policy will be different from what you would get if you bought it before closing, it is still an option.


The Bottom Line on Title Insurance for Your New Waterloo Region Home


Buying a home is possibly the most expensive purchase you’ll ever make. Be sure to protect your investment as best you can.


If you have questions about title insurance, or any other aspect of the home buying process, this is just another advantage of having an experienced local Waterloo Region real estate agent on your side. They can explain all these little things to you in language that's easy to understand and will be able to recommend great local options for buying things like title insurance.



Getting ready to buy a Waterloo Region home, or sell the one you have? Let Team Pinto use our huge experience and expertise to help you. Contact the award-winning Team Pinto here, or book a free Zoom consultation to discuss your unique Waterloo Region real estate needs here.




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