Title insurance is a one-off policy you can take out when you buy a property. It covers you for certain problems with the property or its title that were already there when you bought it and that you didn’t know about, like building work that was never approved, a fence over the boundary, or fraud. It isn’t home and contents insurance, and it doesn’t replace the contract review and searches your conveyancer does.
Title insurance usually comes up halfway through buying, often as a line in an email from your conveyancer asking if you’d like it. You’re already juggling the loan, the deposit and the move, so it’s easy to say no without really knowing what it is.
This guide explains what title insurance covers, what it doesn’t, what your conveyancer already checks, and how the two work together.
You’ll see Stewart Title mentioned a lot in this guide. They’re one of the title insurers in Australia and we partner with them, so we’ve used their policies to show how title insurance works.
Title insurance works the same way in every state, but the searches your conveyancer orders are a bit different in each one. Our guides to conveyancing in Victoria, conveyancing in Queensland and conveyancing in the ACT explain the local process.
What does title insurance cover?
Every insurer’s policy is a bit different. Stewart Title’s home buyer policy, for example, covers you for the problems below, as long as they were already there when you bought and you didn’t know about them.
| Problem | What it means |
|---|---|
| Illegal building work | The council takes action over something built without the right permits, or not built the way the permits allowed |
| Survey and boundary problems | Something a current survey would have picked up, like a fence or garage over the boundary |
| Planning and title problems | An easement or covenant that was never registered, a problem with access, or a defect in the title itself |
| Registration gap | Someone else lodges something on the title that stops your purchase being registered |
| Fraud, forgery and identity theft | You lose ownership because of fraud or forged documents |
| Unpaid rates and taxes | Rates or taxes left unpaid on the property that become your problem as the new owner |
If you want to know more, we have guides on easements and on caveats, which are one way someone can lodge a claim on the title.
You won’t see any of these problems at an inspection.
What doesn’t title insurance cover?
There are limits too. Stewart Title’s brochures list these:
- Cover for unapproved building work is capped at $160,000.
- Boundary and survey cover doesn’t apply to land over 50 acres.
- For strata properties, problems caused by non-compliant external cladding aren’t covered.
- Every application is assessed individually, and the policy documents decide what’s covered.
The policy is for problems you didn’t know about. If your conveyancer finds a problem during the purchase, Stewart Title says it may still be able to cover it at no extra cost, as long as you contact them before settlement. That’s one reason title insurance usually comes up before settlement rather than after.
It’s also not a replacement for a building and pest inspection. Title insurance covers legal and compliance problems, not general wear and tear or pest damage.
Title insurance can pay for some problems after you buy. Finding problems before you’re locked in is your conveyancer’s job.
What do your conveyancer’s searches find, and what can they miss?
When you buy, someone has to review the contract before you sign, run the property searches, deal with your lender and the seller’s side, and complete settlement electronically so the property is registered in your name.
In NSW, for example, the contract for sale comes with a title search and plan, which show who owns the land and what’s registered against it. It also includes the section 10.7 certificate, which is the council’s statement of the zoning, planning controls and hazards that apply to the land on the day it’s issued.
But searches only show what’s on record. Building work done without approval may not show up on any certificate unless you order an extra search, like a building certificate. A fence or garage over the boundary usually only shows up on a current survey, and a survey isn’t one of the standard searches. And fraud is unlikely to show up in a search at all.
Your conveyancer
Reviews the contract before you sign, orders the searches, explains what they show and deals with any problems while you can still do something about them.
A title insurance policy
Pays for certain problems later, if they were there when you bought and nobody found them, under the terms of the policy.
Stewart Title says the same thing in its brochures: title insurance doesn’t replace a conveyancer or solicitor, and having both gives you the most complete protection.
How do you buy title insurance, and when?
You arrange it during the purchase and pay for it once. With Stewart Title, the premium is a one-off payment at settlement and there’s no excess. Claims are no-fault, which means you only need to show you’ve had a loss the policy covers, not that someone did something wrong. The cover lasts as long as you own the property and allows for the property going up in value.
- Contract reviewed and searched
- Policy arranged before settlement
- Premium paid at settlement
- Covered while you own it
The premium is paid on settlement day with everything else.
Already own your home? Stewart Title also has policies for existing owners.
What do real title insurance claims look like?
Stewart Title publishes examples of claims it has paid. Here are three of them, with Stewart Title’s figures.
The Sydney extension. During the purchase, the buyer decided not to get a building certificate. After settlement, they asked the council about adding a pergola, and the council found that an existing extension had never been approved. Because it had been built without consent and without proper footings, the council ordered it to be demolished. A pre-purchase building inspection hadn’t picked it up. Stewart Title paid more than $110,000 to demolish the extension and rebuild it to code.
The Tumbi Umbi deck. After settlement, the owners of a house at Tumbi Umbi on the Central Coast asked the council about doing more work. The council found that the back deck and a dining room conversion had never been approved, and said it wouldn’t consider any new work until that was fixed. Stewart Title paid $76,000 to bring the work up to standard. The premium had been $495. If you’re buying in the area, our page on conveyancing on the Central Coast covers the local process.
The concrete under the floor. In Victoria, owners renovating after settlement had a survey done and found that the neighbour’s concrete footing had spread under their floor. It had to be removed before the new floor could go in. Stewart Title paid about $50,000 to have it removed, on a premium of $544.50.
In each case, the problem was already there at settlement and nobody knew about it. That’s exactly what title insurance is for.
Is it different for strata units and vacant land?
For strata units, Stewart Title’s strata policy also covers two problems that only come up with strata. The first is changes made to the unit without council or body corporate approval, which a new owner can be ordered to undo. The second is unpaid strata levies, including special levies, that become yours as the new owner. To catch those problems before you buy, see what a strata report shows. If you’re new to strata, our guide to strata title explains how it works.
For vacant land, Stewart Title’s policy also covers conditions of a development approval that a previous owner never met, which you might otherwise have to sort out at your own cost. The cover also allows for the land going up in value as you build on it. If you’re buying off the plan, our guide covers the contract and sunset dates.
Is title insurance worth it?
There’s no single answer, and title insurance isn’t compulsory. You pay one premium for cover against problems that are uncommon but can be expensive. Whether that’s worth it for your purchase is up to you.
It’s more relevant where the problems in the table are more likely: older homes that have been extended or renovated, strata units the previous owner may have changed, structures with no approval on file, and purchases where no current survey was done. Either way, it doesn’t replace the contract review or the searches. A policy might pay for a problem after you buy, but it won’t warn you about one before you sign.
Before you decide, ask your conveyancer what the searches showed.
What does this mean for your purchase?
- Ask your conveyancer what the searches showed and whether anything’s missing.
- Ask whether any structure on the property doesn’t have approval on file.
- If you’re thinking about a policy, raise it before settlement.
- Read the policy wording, including the limits, before you agree.
As we mentioned, Titlespace is a Stewart Title partner. If you’d like to look at a policy while you’re buying, we can send you Stewart Title’s policy information and help with the application. Whether you take it out is completely up to you.
Titlespace is a conveyancing law firm based in Sydney acting for buyers, sellers and transfers in NSW, VIC, QLD and the ACT. Our conveyancing for buyers starts with a contract review before you sign, and our guide to conveyancing in NSW covers the rest of the process.
Reviewed by Marc Ryckmans, Legal Practitioner Director, November 2026. Last updated November 2026. This article is general information about title insurance in NSW, VIC, QLD and the ACT. It is not legal advice about your transaction.
The content of this blog post is intended as general information and should be considered broad guidance only. It does not constitute legal, financial, or tax advice and should not be relied upon as such. Every property transaction is different, and we recommend seeking personalised advice from a qualified professional before making any investment or legal decisions.
Questions buyers ask about title insurance
Do I need title insurance if I have a conveyancer?
They do different jobs. Your conveyancer reviews the contract, orders the searches and tells you what they show before you’re locked in. Title insurance pays for certain problems later, if they were already there when you bought and nobody found them, like building work that was never approved or a fence over the boundary. Stewart Title itself says title insurance doesn’t replace a conveyancer or solicitor, and that having both gives you the most complete protection. Whether you also want a policy is up to you.
How much does title insurance cost in Australia?
It’s a one-off premium paid at settlement, and the amount depends on the property and the policy. As a rough guide, the premiums in Stewart Title’s published claim examples range from about $270 for a strata apartment to about $1,200 for a house. Stewart Title publishes its premiums on its website. What you’d pay is whatever the insurer quotes for your property.
Can I get title insurance after settlement?
Yes, with some insurers. Stewart Title has policies for people who already own their home, both houses and strata units. There’s one advantage to taking it out while you’re buying: if your conveyancer’s searches turn up a problem, Stewart Title says it may be able to cover it at no extra cost, as long as you contact them before settlement. Once you own the property, any application is assessed on its own facts.
Is title insurance compulsory in Australia?
No. Title insurance is optional. Some lenders have their own arrangements, but you don’t need a policy to complete a purchase. It’s a decision to make once you know what the searches showed, ideally before settlement.
Is title insurance a waste of money?
Most people never make a claim, which is true of most insurance. The argument for it is that the problems it covers, like an extension the council never approved, are uncommon but can be expensive. In one Stewart Title claim, a $495 premium covered $76,000 of work to fix an unapproved deck and dining room conversion. The argument against it is that the contract review and searches still do most of the work, and the policy has limits and exclusions. It comes down to how much risk you’re comfortable with.
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