Title Insurance: What is it & Who Does it Protect?
Two Types of Title Insurance in BC
In British Columbia, there are two main types of title insurance and they serve different purposes:
1. Lender’s Title Insurance
✅ Required by your lender (in most cases)
This policy protects the bank or lender providing your mortgage. It ensures that if something goes wrong with the title like an undisclosed lien or fraudulent transfer they won’t lose money on the loan.
Important: This policy does not protect you as the homeowner. It strictly covers the lender's interest in the property. Almost all major lenders in BC require this as a condition of funding the mortgage.
2. Owner’s Title Insurance
✅ Optional, but highly recommended
This one protects you, the homeowner. It covers many of the same issues as the lender's policy but from your side of the table. For a one-time premium (usually a few hundred dollars for properties under a million), it provides protection for as long as you own the property.
It can help cover:
Legal fees to defend your ownership
Costs to resolve boundary or survey issues
Losses from title fraud or forgery
Unpaid property taxes or utility bills left behind by the previous owner
In a place like BC, where homes are valuable and real estate fraud isn’t unheard of, this added layer of protection can give you serious peace of mind.
Do I Need Both?
If you’re getting a mortgage, your lender will almost always require lender’s title insurance. But whether or not to purchase owner’s title insurance is your decision. As your mortgage broker, I always recommend considering it especially when:
You’re buying a resale home
You’re not getting a new survey or title review
You want long-term protection from unknown risks
Final Thoughts
Buying a home is one of the biggest investments you'll ever make. While title insurance might seem like just another line item in your closing costs, it can save you thousands and a lot of stress down the road.
If you’re not sure whether you need owner’s title insurance, or you’d like help understanding your lender’s requirements, reach out to me anytime. I’m here to help you navigate the process with confidence. I can also connect you with a reputable solicitor in B.C. to discuss whether or not it makes sense for you to protect yourself with this insurance.
Let’s make your homeownership journey in BC a safe one from start to finish.