What provides coverage against actual loss or damage from survey errors or contraventions of municipal by-laws?

Title insurance is specifically designed to provide coverage against losses that can occur due to issues related to the title of a property, including survey errors and contraventions of municipal by-laws. This type of insurance protects property owners and lenders from liabilities arising from defects in the title that may not be identified during the title search process.

For example, if a property owner discovers after purchasing that a portion of their property encroaches upon a neighbor's land due to an inaccurate survey, title insurance would cover the financial loss associated with resolving the issue. Additionally, it addresses risks that might arise from municipal by-law violations, such as improvements made to the property that are later found to be against local regulations, providing peace of mind and financial protection.

In contrast, homeowner's insurance provides coverage for damage to the property itself but does not typically cover title issues, while errors and omissions insurance pertains to professional liability for mistakes made in providing services. Mortgage default insurance protects lenders against the risk of borrower default but does not cover title-related issues. Thus, title insurance is the most appropriate option for protecting against the specific risks mentioned in the question.