Property insurance, what each one covers.
Three different protections get confused at closing. Title insurance, home insurance, and new home warranty each cover something the others do not. Only one is arranged by your lawyer.
Book a 15 minute callTitle insurance
A one time premium near 350 on a typical Greater Toronto Area home, arranged by your lawyer at closing. It covers title fraud, survey defects, certain work orders, and compliance issues for as long as you own the home.
Home insurance
Often called fire insurance, this covers the building and contents against damage. Lenders require it in place on closing day before they release mortgage funds. You arrange it with an insurer, not your lawyer.
New home warranty
New builds in Ontario carry mandatory coverage through the provincial warranty program, protecting against deposit loss, delays, and defects for up to seven years. It is built into a new home purchase.
Important considerations
- Title insurance is one time. Home insurance is annual and required by lenders.
- Title insurance can cover some unknown work orders that a search misses.
- New home warranty does not replace home insurance. You still need both.
Frequently asked
Do I need title insurance if I have home insurance?
Yes. They cover different risks. Home insurance covers physical damage. Title insurance covers ownership and legal defects such as fraud and survey issues.
Who arranges title insurance?
Your real estate lawyer arranges it at closing. Home insurance you arrange yourself with an insurer before closing day.