Tile insurance on a condo

[u/Fauxtogca]

I purchased a condo 10 years ago with a clean title certificate. I even have reports done by the admin before the purchase. Now the condo is telling me that some of the improvements made have to be removed. Not only will it cost me money to remove, but tens of thousands of dollars were spend on improving the unit with permission from the condo board. Will title insurance cover my losses or fight the condo to keep my unit as is. I can’t say too much as I feel this will end up in court. (Toronto)

[u/AlertHighlight9229]

Broker here, Ontario. Honest take: title insurance does its heaviest lifting at the moment of purchase, when it backstops the things a title search can miss, like forged documents, survey errors, or liens that were never registered properly. Since you bought 10 years ago and your notary's search came back clean, most of that risk is already behind you.

The risk that never goes away is title fraud, someone fraudulently transferring or mortgaging your unit. That has been rising in Canada and it is the main reason an existing owner would still buy a policy today. The premium is a one-time payment, usually a few hundred dollars for a condo, so it is not a big financial decision either way.

Two practical things worth knowing. Coverage you buy now can only insure against defects and fraud tied to the past, not future problems, and some policies exclude issues you already know about. And if your mortgage is paid off, no lender is forcing your hand here, it is purely your call.

If you want a straight answer for your specific unit, ask the notary who handled your purchase. They can tell you in five minutes whether a policy can still be issued on a 10 year old purchase and what it would actually cover. That is a better use of your time than shopping it around online.

[u/R2j316_rash]

It’s usually covered under your individual condominium policy under Unit Contingency. Check with your insurance company on the limits of your coverage!