Buying a home is one of life’s most exciting milestones. Amid the joy of choosing paint colours and booking movers, there’s one important protection homeowners often overlook: Title insurance. For a one-time cost of about $250 to $500, title insurance can shield you from legal and financial nightmares, including the growing threat of title fraud.

Title insurance provides peace of mind by protecting homeowners from issues that may not surface during the property closing process. These issues can include errors in public records, undisclosed liens and – most alarmingly – title fraud. In cases of title fraud, criminals steal your identity and use it to illegally sell or refinance your property without your knowledge. Homeowners typically don’t find out until they try to sell their home or receive overdue mortgage payment notices.

Increasingly sophisticated schemes

Those most vulnerable to title fraud include homeowners who have paid off their mortgages and landlords who rent out their properties. However, anyone who owns a home can become a target. Fraudsters are becoming increasingly sophisticated, using forged documents and fake identification to gain access to a property’s legal title. Once that happens, they can remortgage or even sell the home, leaving the rightful owner in a costly and emotionally distressing situation.

Title insurance is a one-time premium paid at the time of closing, though it can also be purchased later as a homeowner policy. While post-closing policies may have certain limitations, they can still provide crucial protection, particularly in private transactions or estate sales.

While title insurance cannot prevent fraud, it can help mitigate the damage. In the event of title theft, it can cover legal expenses required to restore your ownership rights and defend against fraudulent claims. Some policies even include coverage for legal services, but it’s important to read the fine print and ask your real estate lawyer for clarification on what your policy includes.

Smart investment

Although title insurance is optional in Ontario, it’s a smart investment considering the risks. For less than $500, you can protect what is likely your most valuable asset. In a housing market where title issues and fraud are not completely uncommon, this small one-time expense offers substantial long-term security. Before finalizing your home purchase, or even if you’ve already closed, speak with your lawyer about title insurance. It may be one of the most important steps you take to safeguard your home – and your peace of mind.