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What is title insurance?
Title insurance is unlike any other kind of insurance. It is not house insurance which only protects the contents of your home or its structure and for which you have to pay a monthly or annual premium. Unlike house insurance, you only pay a one-time premium with no deductible.
Title insurance is distinctive in that it protects your ownership or title against losses incurred as a result of undetected or unknown title defects, for as long as you own your home. Even if you are the rightful owner of your home, there are instances such as real estate title fraud, when your title can come into question.
What does "title" mean?
When you buy a home, you are buying the title to the property. It is sometimes also referred to as a deed. This means that you own the property and your lawyer registers you as the owner in the land registry system.
Having "good title" to your property is important because it protects your investment so that you will be able to sell your property in the future or obtain financing, such as a mortgage, against your home, if needed.
Why do I need title insurance?
Protect possibly your greatest investment – your home. Whether you are a new homeowner or if you have owned your home for years, title insurance keeps your home safely in your hands.
Title insurance protects you against losses as a result of title defects and claims against a property not uncovered in a title search. Title insurance provides protection against issues like unpaid liens, encroachment issues, construction liens, defects in title, costs arising from building code violations, as well as real estate title fraud.
If real estate title fraud occurs, the onus is on the homeowner to prove the crime and it can be very costly, financially and emotionally, to restore title. Real estate industry insiders now peg the average case of real estate title fraud at $300,000, meaning years of personal and financial repercussions for those who fall victim. In comparison, the RCMP estimates the average credit card fraud case in Canada to be around $1,200.
Homeowners without title protection must navigate the system unaided at a time when they are most vulnerable. Title insurance can help alleviate the stress and financial burden.
For a one-time premium, title insurance covers all legal expenses related to restoring a title and is available to existing homeowners long after they have purchased their properties.
Awareness is the best protection against title fraud.
How does the ‘Market Value Endorsement’ offer additional protection?
What happens if your property increases in value above and beyond the title insurance policy amount?
The Market Value Endorsement will protect you in the event the value of your home increases due to market conditions.
Over the years in which you own your property, the value of your title insurance policy will increase based on the increase in the fair market value of the land, up to a maximum of 200%
of the original policy value. Should you suffer a loss as a result of a covered title risk, the Market Value Endorsement will protect you up to the current market value of your property.
See Pricing Information below: For more information, please contact your branch or to order a policy click [here]
Platinum Title Insurance Policy for Existing Homeowner
Property Value up to $500,000 | Property Value over $500,000 |
$350.00 Plus applicable taxes |
$350.00 + $1.00 per $1,000 above $500,000 Plus applicable taxes |
Market Value Endorsement
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Ordered in conjunction with an Existing Home Owner Policy |
Ordered subsequent to the purchase of an Existing Home Owner Policy |
10% of the homeowner title insurance policy premium |
20% of the homeowner title insurance policy premium |
Copyright © 2008 FCT Insurance Company Ltd. All rights reserved. Source: www.protectyourtitle.com.
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