Knowledge centre
No. Title insurance addresses specified title-related risks; home insurance addresses specified property losses. Ontario does not require title insurance, and it does not replace an Ontario real-estate lawyer’s advice, title review or closing work.
No. The corporation insures the common elements and the standard units as required, but the owner may still need coverage for contents, improvements, personal liability, living expenses, deductible assessments and gaps between the standard unit and the actual unit.
Often yes. A material change in use or risk can affect coverage, and changing owner-occupied space to rental or short-term accommodation can also conflict with mortgage occupancy terms. Insurer notice and lender consent are separate questions.
Yes. Insurance policies can impose conditions when a home is vacant or unoccupied, especially during heating season, and some losses may be restricted or excluded. There is no safe universal number of days to assume—read the actual policy and notify the insurer.
Usually not. Standard coverage and optional water endorsements vary, and overland flood and sewer backup are distinct risks. A policy may cover one, both, neither or impose different deductibles and limits based on the address.
They measure different things. A lender appraisal estimates market value for mortgage-security purposes. An insurer’s replacement-cost estimate focuses on rebuilding the insured structure after a covered loss. Neither number is automatically the correct amount for the other job.
Yes. If acceptable insurance is a lender funding condition, the mortgage may not advance until the lawyer can confirm coverage. The issue is often the property—not the borrower’s income or credit—and it can surface after an approval if insurance was left too late.
The lender is usually named as loss payee because the property secures its mortgage. After a significant covered loss, the insurer may pay you, the lender, or both. The lender may release repair money in stages after receiving estimates, invoices or inspection evidence.
No. Home insurance covers specified damage or loss involving the property and belongings. Mortgage default insurance protects the mortgage lender if the borrower defaults and the sale proceeds do not fully repay the insured loan. It does not replace home insurance and it is not personal payment protection for the homeowner.
Ontario law does not generally force every homeowner to buy home insurance, but a mortgage lender will normally require acceptable property insurance as a condition of funding. The distinction matters: this is usually a mortgage-contract and lender-risk requirement, not an FSRA rule telling every lender what policy to accept.