Title insurance has to do with a mortgage. Are you taking out a mortgage on the property?

Banks require title insurance when issuing a mortgage, but they aren't tied to (i.e., only used in cases utilizing) mortgages.

If there was a $40K lien discovered, and was found to be legit, wouldn't the title insurance only cover $20K of it?

I do not buy title insurance for a flip house. The insurance cost is high and the coverage is very limited. In my area, property transactions are all available online without any fees so I can do my own research. I play the odds that the previous ownership transfers and title insurance searches would have likely caught old issues and I can see anything recorded against the parcel number. You may find it useful to visit the county recorder's office to see what documents have been recorded. Make sure your contract calls for you to receive a warranty deed, not a quit claim deed. 
My philosophy is to insure what I can not afford to lose but to cover most small risks myself. My biggest concerns are always those instances where the potential costs are quite high, like health care and liability.  On a related note, have you discussed liability insurance with your insurer? Our previous company required a separate listing for each property I owned but our current carrier says that my umbrella coverage is valid at any of my properties, even if it is not insured for property damage.

Usually a requirement by solicitors in Ontario, otherwise they are on the hook for oversights etc.

As a mortgage lender, we require it and the fee is paid by the borrower (mortgagor). One time we utilized it when the solicitor didn't get a tax clearance and there was several years of property taxes owing. The title insurer paid the taxes.

I guess it depends on the coverage and where you live. I did a flip recently purchase price was 75k cash and title insurance was 1% or 750$ like others said if you're cool with the risk of loosing all your money when someone comes along with a lien on the property or a divorce was filed while the property was selling, or the seller forged a title etc.

Post was edited to include spam, and that post has now been removed.

Again, are you suggesting the above post had spam?

Not yet. To clarify: every time this bot has posted before the post has been edited to include spam. There are no posts that do not have added spam. This bot is a spam editor. It just has not happened here yet.

sushi, I really don't understand. If you click on his profile this is the only comment he's ever made.

I've flagged 4 or 5 spam comments in the past couple of weeks and all have been taken down already. I have a good memory. ;) So no other comments show up at the moment.

@olychick - the reason for the only comment is likely because the others have been removed.

Yes, spam!

*****

Super priority and extended super priority lien coverage is available in Canada.

Super priority liens take precedence over all other liens against the property regardless of when they are registered. These are typically charges by government bodies. They don't have to be registered and there is no central source to find out about their existence.

With coverage, you are compensated if a super priority lien would otherwise reduce or eliminate your equity. This protects property buyers and lenders.

For example, our co. registered a second mortgage against a home. It went into default. When our solicitor checked title, he found a CRA (Canada Revenue Agency) super priority lien suddenly registered. The borrowers, who were in good standing when we loaned them the funds, had "overlooked" some $200K in income taxes the following year. They managed to refinance with another lender. But if they hadn't and the property were sold for a loss due to the $200K in back taxes and penalties, we would have been out those monies.

Super priority liens and coverage exists in the US as well.