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The word is out on title fraud. Thanks to recent media attention on the growing problem, more Canadians are learning how title insurance can protect them. But many are left asking themselves: how do I know if I have it?
The biggest cause of the confusion is that there are two types of title insurance: lender policies and owner policies, and they often get confused with each other since they’re both referred to as “title insurance.” But they provide different coverage, and only an owner policy can protect you, the homeowner.
Not sure if you have an owner policy? You can sign up for one now.
Why do I have a title insurance policy for my lender?
Including title insurance when closing on a mortgage is a best practice for many lenders in Canada. The policy protects your lender against losses from, for example, a fraudulent discharge of its mortgage.
By lowering their risk with title insurance, your lender is able to offer a lower rate than they’d be able to without it. Title insurance also makes the closing process smoother, which benefits both you and your lender.
Why do I need a title insurance policy for myself?
Getting a homeowner title insurance policy for yourself is always a worthwhile investment. For a one-time premium, you get protection against a variety of risks, for life.
Your title insurance policy will be the best protection against home title theft. The losses could be massive—tens of thousands of dollars for fraudulent mortgages, and hundreds of thousands for home title theft.
If I didn’t get title insurance when I bought my home, is it too late now?
No, it’s not too late. You can still get title insurance even if you’ve owned your home for years. If you know you don’t have coverage, you can sign up here.
What if I’m not sure whether I have title insurance?
Because most people buy their title insurance during the closing process, and only need to make one payment, it can be easy to forget if you purchased it or not.
It’s always a good idea to make sure you’ve verified your coverage. Here are three easy steps to know where you stand:
Contact FCT. If you are a policyholder, we’ll have your policy on file and will be able to send you a copy. Please call our customer service line at 1.877.888.1153 Monday to Friday between 8:00 a.m. and 8:00 p.m. EST.
Check your closing documents. Remember to verify the policy type, even if you see title insurance in the closing documents you got from your real estate lawyer or notary—it could just be the lender policy.
Ask your real estate lawyer or notary. They would have been the one to order your homeowner policy if you got it at purchase, so they can find out directly from the insurance provider for you.
If you don’t have a title insurance policy, it’s time to get protected. Sign up today, or contact your lawyer or notary.
Insurance by FCT Insurance Company Ltd. Services by First Canadian Title Company Limited. The services company does not provide insurance products. This material is intended to provide general information only. For specific coverage and exclusions, refer to the applicable policy. Copies are available upon request. Some products/services may vary by province. Prices and products/services offered are subject to change without notice.
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