The Co-operators announced today that it has made arrangements with Oakville, Ont.-based First Canadian Title to offer residential title insurance protection for existing homeowners.
Real estate title fraud costs Canadians as much as $300 million a year, according to the Canadian Institute of Mortgage Brokers and Lenders.
Title insurance protects homeowners against challenges to the ownership of their homes, including title defects, fraud and forgery. Title fraud includes registration of a fraudulent mortgage against the legitimate owner’s property, and fraudulent sale of real property. Once the title is transferred, a fraudster may obtain a mortgage on the property and arrange to receive the funds.
In March 2007, The Co-operators, based in Guelph, Ont., added identity theft coverage at no charge to its home insurance policies. It covers up to $10,000 of costs associated with recovering or correcting damage to personal identity. Title insurance, which complements identify theft coverage, covers all legal expenses and manages the process related to restoring title after fraud or forgery.
“Restoring your title can be very costly both financially and emotionally,” says Kathy Bardswick, president and CEO of The Co-operators. “For a one-time premium, title insurance can help victims through the difficult process of reclaiming what is rightfully theirs — their home.”
Title insurance also protects home ownership from many other title defects. Coverage may include unmarketability of the land due to matters that would have been disclosed on an up-to-date survey, lack of legal access to the property, encroachments onto neighbouring properties and zoning infractions.
Until recently, residential title insurance was only available at the time a home was purchased. This coverage launched today is available only to existing homeowners.
Co-operators to offer title insurance to existing homeowners
Title insurance covers all legal expenses related to restoring title after fraud or forgery
- By: IE Staff
- December 5, 2007 December 5, 2007
- 10:10