Home and Property Title Insurance​ - Is It Worth It?

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Home > Blog > Home and Property Title Insurance​ - Is It Worth It?
Property Insurance for Buyers

Buying a property is one of the biggest financial commitments you will make, and protecting that investment should be a top priority. While standard home insurance covers damage to the structure and contents of a property, property title insurance provides a different kind of protection—safeguarding against legal risks associated with property ownership.

But is this type of insurance really necessary, and what does it cover? Below, we break down its benefits, key considerations, and whether it is worth the investment for homebuyers in Queensland.

What is Property Title Insurance?

Property title insurance is a one-time insurance policy that protects homebuyers and property owners from financial loss due to defects in the property title. Unlike traditional home insurance, which covers physical damage, title insurance addresses legal risks related to ownership.

What Does Property Title Insurance Cover?

Title insurance for your home can help protect against:

  • Errors in public records – Mistakes in past title registrations can lead to disputes over ownership.
  • Undisclosed encumbrances – Unexpected claims on the property, such as unpaid debts, easements, or restrictive covenants.
  • Fraud and forgery – Protection against fraudulent sales or identity theft affecting the title.
  • Survey and boundary disputes – Issues where property boundaries are unclear or encroachments exist.
  • Zoning and permit violations – Previous owners may have made unapproved modifications, leading to legal consequences.

Unlike standard insurance policies, property title insurance is a one-off payment, meaning there are no ongoing premiums.

Why is Property Title Insurance Important?

Protecting Your Financial Investment

Even with a thorough property search, legal issues can arise after settlement. If an undisclosed claim on the title appears, you could face costly legal battles or, in extreme cases, lose ownership of your property.

Covering Issues Missed in Conveyancing

Even the most detailed conveyancing process cannot guarantee that all title defects are uncovered. Title insurance acts as a safety net for unexpected title disputes.

One-Time Cost for Lifetime Protection

Unlike other types of insurance, title insurance is a one-time payment that provides coverage for as long as you own the property. This makes it a cost-effective way to safeguard against potential future claims.

Is Property Title Insurance Required in Queensland?

While title insurance is not legally required in Queensland, many property lawyers and conveyancers recommend it as an additional layer of protection.

In Queensland property contracts, the buyer assumes risk for the property from 5 pm on the first business day after the contract date. This means that if any legal issues arise related to the title after the contract is signed, the buyer is responsible. Title insurance helps mitigate this risk.

Who Should Consider Property Title Insurance?

  • First-home buyers – New buyers may not be aware of potential legal pitfalls.
  • Buyers of older properties – Older homes may have outdated or incorrect property records.
  • Investors – Those purchasing multiple properties can benefit from extra protection.
  • Rural property buyers – Land boundaries and easements are often more complex in rural areas.

How to Get Property Title Insurance in Queensland

If you decide title insurance is right for you, here is a simple step-by-step guide:

Choose an Insurer

Title insurance is offered by specialised insurers in Australia, such as:

  • First Title
  • Stewart Title

Obtain a Quote

The cost depends on your property’s value but is usually a one-time payment ranging from $500 to $2,000.

Review the Policy

Check what is covered, including exclusions, claim limits, and policy duration. Your conveyancer or property lawyer can help clarify any terms.

Purchase the Policy

Once reviewed, finalise the policy before settlement to ensure coverage from the start of ownership.

Does Property Title Insurance Replace Home Insurance?

No, property title insurance does not replace standard home and contents insurance. Instead, it complements other types of insurance by covering legal risks, while home insurance protects against physical damage to the property.

What Other Insurance Should You Consider?

Depending on the type of property, you may also need:

Home and Contents Insurance

For houses, comprehensive home insurance covers:

  • Structural damage
  • Contents (furniture, appliances)
  • Public liability

Strata Insurance (For Units and Townhouses)

If you are buying a unit or townhouse, the body corporate usually insures:

  • Common property
  • Shared facilities
  • Public liability

However, this does not cover personal belongings inside your unit, so additional contents insurance is recommended.

Public Liability Insurance for Vacant Land

If you are purchasing vacant land, consider public liability insurance to protect against accidents or claims from third parties.

Is Property Title Insurance Worth It?

For a one-time payment, title insurance provides long-term protection against legal risks that could cost thousands of dollars. While not mandatory, it offers peace of mind, especially for:

  • First-home buyers unfamiliar with title risks
  • Investors seeking to protect multiple properties
  • Buyers of older or rural properties with uncertain title histories

Before deciding, consult your conveyancer or property lawyer to determine whether it suits your needs.

Need Help with Title Insurance? Contact Us Today

Buying a home or investment property? Our experienced conveyancing team can guide you through the title insurance process, ensuring you are fully protected.

  • Expert legal advice on title risks
  • Assistance in choosing the right title insurance policy
  • Seamless settlement management

Call us today at (07) 4052 0780 for professional property advice and peace of mind.