# What are the common exclusions in a 2026 title policy?

> It does NOT cover environmental issues (e.g., oil tanks), issues you knew about before buying, or changes you make to the boundary after the policy is issued.

Category: Closing
Last verified: 2026-02-18
Source: https://ratellow.com/faqs/closing/what-are-the-common-exclusions-in-a-2026-title-policy

## Answer
| Coverage Area | Covered? | Details |
|---|---|---|
| **Title defects & liens** | ✅ Yes | Outstanding mortgages, easements, liens |
| **Fraud & forgery** | ✅ Yes | Identity theft, forged documents |
| **Survey/boundary issues** | ✅ Yes | Encroachments, setback violations |
| **Environmental hazards** | ❌ No | Oil tanks, contamination |
| **Known defects** | ❌ No | Issues disclosed before purchase |
| **Post-purchase changes** | ❌ No | Your own renovations/boundary changes |
| **Native land claims** | ❌ No | Aboriginal title claims |

**Data Summary:**

- Market Penetration: 98% of Ontario/BC residential deals use title insurance.
- Key Exclusions: Native land claims, environmental hazards, known easements.

## Related guide
- https://ratellow.com/guides/title-insurance-explained

## Sources
- Title Insurance — Financial Consumer Agency of Canada — https://www.canada.ca/en/financial-consumer-agency/services/mortgages/title-insurance.html
- Title Insurance Information — LAWPRO — https://ratellow.com/guides/title-insurance-explained
- Home Buying Guides — CMHC — https://www.cmhc-schl.gc.ca/consumers/home-buying/buying-guides