From the blog...
Title Insurance
There’s a lot of confusion about title insurance. Some people call title insurance the “surprise” insurance because they assume it covers any surprises with the property they’re buying. It’s only when there’s a problem that homeowners actually check what their policy covers. By then, it’s too late.
When buying an Ottawa home, it’s important to know what title insurance covers. Does it cover structure, hidden things in the basement, leaks? How many homeowners ask these questions before buying any insurance related to their home? Not enough, I can tell you that much.
Most people buy title insurance when they purchase a home. But it’s not required in Canada. It’s meant to protect homeowners from perils such as title fraud, unpaid liens, encroachments from neighbouring properties — anything that can challenge the ownership of your home or anything related to the title of your home. It also covers losses related to the title or ownership of the property. But it’s not a home warranty or home insurance policy.
Every insurance policy is different. And, as the insurance company makes up the rules, do you think they play to lose?
For instance, most insurance companies don’t cover a leaking foundation. Why? Probably because almost every single foundation leaks. Insurance companies would go bankrupt if they covered leaking foundations. That’s why they make the rules on what they will and will not cover. That’s just smart business. So you need to be smart, too.
Ask plenty of questions about what your title insurance covers (and what it doesn’t cover), up to how much and for how long. Also find out if you can pay extra to make sure it covers everything. It might be just $1,000 more, but I’d pay it for that extra insurance. Or you might need a different type of insurance altogether.
Before you buy title insurance, talk to a lawyer and the title insurance company. Make sure you understand exactly what you’re getting.
If you have any questions, please don’t hesitate to give me a call.
Chris