Title insurance is a one-time payable insurance that protects your ownership title. It will protect from certain losses that were a result of unknown title issues or other irregularities that existed but were unknown to you at the time of your purchase.
Title insurance can cover losses such as someone else claiming interest in your ownership title, identity fraud, violations of municipal zoning bylaws, amongst many other things.
The cost of the title insurance is directly related to the purchase price of the property, or in some cases is related to the amount of your registered mortgage. It is a one-time payable premium, meaning that it does not need to be paid or renewed on an annual or monthly basis.
The protection remains valid as long as you are the owner of the property. However, in many cases, if there is an irregularity with the property such as a violation of municipal zoning bylaw, your financial institution will require that a lender title insurance policy be added. Therefore, if you were to refinance the property, you would need to renew the policy to reflect the new registered mortgage. The policy is transferable to your heirs, but will not be transferable to a new owner in the event of a sale.
Upon verifying the Certificate of Location (a document prepared by a Land Surveyor), your Notary will be able to advise you if there are any irregularities such as encroachments or violations of municipal bylaws that will require a title insurance protection (for example, if your property is not built in conformity with the zoning bylaws).
Your Notary will be able to assist in the purchase of the title insurance policy. However, if you need to make a claim, you will need to contact the insurance provider directly.
Source: Stewart Title Guaranty Company
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