Written by Lisa Sly   |   Posted on   |   242 views

Default Insurance

Default insurance, also known as Mortgage Default insurance, is mandatory in Canada when a homebuyer makes a down payment of less than 20% of the property’s value. This insurance protects lenders in case the borrower defaults on their mortgage payments.

The most common provider of default insurance in Canada is the Canada Mortgage and Housing Corporation (CMHC). Other private insurers, such as Genworth Canada and Canada Guaranty, also offer this coverage.

Default insurance provides financial security for lenders, enabling them to offer mortgages to borrowers with smaller down payments. It helps promote homeownership and ensures a stable housing market by reducing the risk associated with high loan-to-value ratio mortgages.

Title Insurance

Title insurance is designed to protect homeowners and lenders from any legal or financial issues related to the ownership of the property. It provides coverage against potential problems with the property’s title, such as undisclosed liens, encroachments, or errors in the public records.

Title insurance is typically obtained during the home purchase process, and it offers peace of mind by ensuring that the property’s title is clear and free from any potential claims. It can also cover legal fees in case of a dispute over ownership.

Not only is Title insurance mandatory with every single lender in Canada requiring you to purchase title insurance on their behalf, it is also highly recommended to protect homeowners from potential risks that may arise from past ownership issues.

Tenant Insurance

What if you’re renting an apartment or house?  What are your insurance needs? 

Tenant insurance, also known as Renter’s insurance, is a type of insurance designed to protect people who rent their homes in Canada. While the landlord may have insurance coverage for the building, it typically does not extend to the tenant’s personal belongings or liability.

Tenant insurance provides coverage for personal property, including furniture, electronics, clothing, and other valuables, in the event of theft, fire, or other covered perils. Additionally, it offers liability protection in case someone is injured on the rented property and holds the tenant responsible.

Tenant insurance is important because it provides financial security and peace of mind to tenants by reimbursing them for lost or damaged belongings and covering legal expenses in case of a liability claim. It ensures that tenants can recover from unexpected events and continue their daily lives without significant financial burden.

Related: To Buy or Rent? Important Advice For Home Renters

As a Canadian homeowner, it is vital to understand the various types of insurance available to protect your investment. From default insurance and property and fire insurance to title insurance, strata insurance, and mortgage insurance, each policy serves a specific purpose in safeguarding your home and financial well-being.

Carefully consider your specific needs and consult with insurance professionals to ensure you have adequate coverage. Regularly review your policies to accommodate any changes in your property or circumstances, and always prioritize protecting your home and assets for a secure and worry-free homeownership experience.

*All information provided by the Brantford Regional Real Estate Association (BRREA) and ITSO for the highest sales volume and highest number of completed transactions since January 1, 2015. All Brantford MLS® House Listings come from the various systems operated by Real Estate Boards and Associations across Canada. The trademarks REALTOR®, REALTORS® and the REALTOR® logo are controlled by The Canadian Real Estate Association (CREA) and identify real estate professionals who are members of CREA. Used underlicense. The trademarks MLS®, Multiple Listing Service®, and the associated logos are owned by The Canadian Real Estate Association (CREA) and identify the quality of services provided by real estate professionals who are members of CREA. Used under license.



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