“What is Title Insurance and Why Should You Care?”
Title insurance is a financial product that helps protect homeowners in the event of an issue arising related to their property title. Some common examples include (but are not limited to):
Title Fraud
Undischarged liens
Encroachments
Survey disputes
Property Tax arrears
Most home owner title insurance policies remain valid for as long as the purchaser owns the property. The purchaser is the policy owner and beneficiary and pricing is typically based on the property’s value.
Lender title insurance polices on the other hand, protect the lender’s interest in the mortgage. This policy remains intact for as long as the mortgage is held without changes by the borrower. Pricing for this type of policy is based typically on the size of the mortgage.
First Canadian Title, one of the world’s largest providers of title insurance has a helpful calculator to estimate costs. You can access it here (https://quote.fct.ca)
To reduce the likelihood of falling victim to title fraud, put into practice the following:
1. Verify the identity of anyone you share your financial info with, especially by phone
2. Keep all mortgage documents in a secure location
3. Shred all old mail — do not toss in the trash or place in the recycle bin
4. Double check the status of the title insurance on your home
As always, be sure to speak with a legal professional to confirm your title insurance policy is active and up to date. A fifteen minute phone call could save you thousands in the long run.
