Title insurance in Canada: cost, coverage, who requires it (2026)

The two policies — and who each one protects

Policy	It protects	Typical cost*	Mandatory?
Lender's policy	The lender only, up to the loan balance	Often folded into the combined range	Required by most lenders (contract, not law)
Owner's policy	You, up to the property's value, for as long as you own it	≈ $200 – $500 (typical home)	Never — it's a choice

* Market ranges observed on 2026-08-12; the premium follows the insured value and the insurer. No official schedule exists: insurers publish public calculators (FCT, Stewart Title — see Sources) that return an exact price in two minutes. When the owner's and lender's policies are issued together, the second is usually added for a modest amount.

What the premium covers — and does not

Title insurance covers problems with the title itself: a defect in the chain of title, an undischarged mortgage or lien that resurfaces, taxes unpaid by a former owner, an encroachment revealed after the fact, survey errors — and, the most-cited motive today, mortgage fraud and identity theft: someone mortgaging or selling your property without your knowledge. The owner's policy lasts as long as you hold title, with no annual premium.

It does not cover: defects you knew about at purchase, visible problems an inspection should have caught (see the pre-purchase inspection), environmental issues, or losses unrelated to title. Nor does it replace the lawyer's or notary's work — the title examination remains the first line of defence; insurance takes over for what the examination cannot see.

Nobody requires it — except your lender, by contract

No Canadian province forces a buyer to purchase title insurance. What does exist: most mortgage lenders require it as a condition of funding — a contract clause, not a law — and that policy protects only the lender. In Alberta, it commonly serves as the alternative to a Real Property Report with municipal compliance; in Ontario, it has become near-universal in transactions; in Quebec, the notarial system makes it less common — the notary examines title and publishes your rights — but it is offered there and sometimes required by the lender.

The Canadian market has a handful of specialized insurers — FCT (First Canadian Title), Stewart Title, TitlePLUS (the program of Ontario's lawyers' liability insurer), Chicago Title. A verifiable and useful detail: your lawyer or notary cannot take a commission for selling you the policy — ask which one they propose, and why.

Frequently asked questions

How much does title insurance cost in Canada?

Title insurance is a ONE-TIME premium, paid once at closing, with no renewal: for a typical home, expect in the range of $200 to $500 (more above a million, since the premium follows the insured value). No Canadian law requires it — when it is "mandatory", that is a contractual requirement from your lender, and the lender's policy protects only the lender: the OWNER's policy is bought on top, usually for a few dozen dollars more when both are issued together. It covers title defects, mortgage fraud and identity theft, encroachments and undetected liens — not defects you knew about. Insurers publish quote calculators: get your exact number before closing.

Is title insurance mandatory?

No law requires it, in any province. Most lenders require it by contract as a loan condition — but that policy protects the lender, not you. The owner's policy is always optional; if you want it, the economical moment to buy is at closing, together with the lender's policy.

Is it a one-time payment or an annual premium?

One-time. The premium is paid once, at closing, and the owner's policy stays in force for as long as you hold title — no renewal, no annual premium. That is what distinguishes it from home insurance, which renews every year.

Does title insurance replace a survey or certificate of location?

In the lender's eyes it sometimes stands in for one — in Alberta it is the common alternative to a Real Property Report with compliance; elsewhere it avoids ordering an up-to-date survey. But it compensates, it does not inform: it will indemnify you for an encroachment where a survey would have SHOWN it to you before buying. In Quebec, the certificate of location remains required by the notary in nearly every purchase.

What does it cover against fraud?

Title fraud: someone impersonating you to mortgage or sell your property, or a forged power of attorney in the chain of title. It is the insurers' main selling point today — and the most publicized claim type. The owner's policy covers the legal costs of restoring your title.

Sources

A closing to secure?

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Title insurance in Canada: what it costs, what it covers, and who actually requires it