Do I Need Title Insurance When Buying a House?

Short answer: If you are getting a mortgage, you will almost always need to pay for a lender's title insurance policy, because most lenders require one. An owner's title insurance policy is optional, but VA and the CFPB both point out that it is the policy that protects your own money in the home. The lender's policy only protects the lender. If you pay cash, no lender requires anything, and an owner's policy is the only title coverage you would have.

Jennifer Rodriguez is a Realtor® and Military Relocation Professional (MRP®) in Northwest Las Vegas helping military families buy with a VA loan.

Title insurance shows up on your Loan Estimate as a line or two most people skim past. It is worth one careful read, because one of those policies protects your lender and the other one protects you. Here is how to tell them apart and decide.

What is title insurance?

Title insurance protects against claims that someone else has a right to the home. The CFPB's home loan toolkit explains that when you buy, the seller transfers legal ownership, called "title," to you, usually through a deed. Title insurance can protect you if someone later sues and says they have a claim against the home.

The CFPB names two common claims: a previous owner's failure to pay taxes, and contractors who say they were not paid for work done on the home before you bought it. VA's Buyer's Guide uses a similar example, home repairs that weren't paid off when the seller sold the home.

Is title insurance required when buying a house?

Lender's title insurance usually is. Owner's title insurance is not.

VA's Buyer's Guide says most lenders require title insurance to protect them against legal claims against the home. The CFPB says the same thing about mortgages in general. The CFPB toolkit adds that your Loan Estimate lists the owner's policy as optional if your lender does not require it as a condition of the loan.

What is the difference between lender's and owner's title insurance?

The difference is who gets protected.

• Lender's policy. The CFPB says it protects your lender against problems with the title, and it protects the amount the lender loaned you. The CFPB is clear that it does not protect your investment in the home, which is your equity.
• Owner's policy. The CFPB says it protects the homeowner if someone sues and says they have a claim against the home from before you bought it. VA's Buyer's Guide calls the owner's policy optional but highly recommended, and describes it as a one-time premium.

Here is what most people don't realize. The CFPB notes that if someone does bring a claim against your home, you are the first person responsible. The lender's policy is not there to defend your share.

Do you need title insurance if you pay cash?

No one requires it, because there is no lender. That also means there is no lender's policy at all. If a claim against the title shows up later, an owner's policy is the coverage that would step in for you.

Paying cash puts more of your own money in the home on day one. That is the situation an owner's policy is built for. Weigh the one-time cost against how much you have at stake.

Do you need title insurance on a new build?

A brand-new house can still carry an old problem. The house is new, but the land has a history, and the CFPB's own example of a common claim is a contractor who says they were not paid for work done before you bought the home.

On a new build, a lot of people and companies put work and materials into the property in a short time. Ask the escrow or title company what the preliminary title report shows before you close.

How does title insurance work in Nevada?

A few things are specific to Nevada law, in Chapter 692A of the Nevada Revised Statutes:

• Rates and policy forms are filed with the state. NRS 692A.120 says each title insurer must file its rate schedules, schedules of charges, and policy forms with the Commissioner of Insurance, and a form or schedule cannot be used until it is approved.
• The preliminary report is an offer, not a promise about the title. NRS 692A.023 defines a preliminary report of title as an offer to issue a policy, subject to the terms and exceptions it lists. It says the report is not a representation of the condition of the title. Read the exceptions.
• Escrow officers often work for title companies. NRS 692A.028 defines an escrow officer as a person employed by a title insurer or title agent to handle escrows, settlements, and closings. Title agents, title insurers, and escrow officers must be licensed under NRS 692A.100.

The CFPB toolkit also notes that in several Western states, the person who handles your closing is known as an escrow agent rather than a settlement agent.

Can you shop for title insurance?

Yes, in most cases. The CFPB says you can usually shop for your title insurance provider separately from your mortgage. Your lender gives you a list of closing service companies, but you can choose one that is not on the list if your lender agrees to work with your choice.

The CFPB toolkit also says the seller cannot require you to buy a title insurance policy from a particular title company. And the CFPB notes that the total cost is usually lower when you use the same provider for both the lender's policy and the owner's policy.

Who pays for each policy is something your purchase contract spells out. Read that line before you sign, and ask your agent what is typical.

Common title insurance mistakes

• Thinking the lender's policy covers you. It protects the loan, not your equity.
• Skipping the owner's policy on a cash purchase. With no lender, there is no other title policy in the deal.
• Not reading the preliminary title report. In Nevada it is an offer to insure with listed exceptions. Those exceptions are what the policy will not cover.
• Comparing line items instead of totals. The CFPB says your title company's itemized fees may look different from your Loan Estimate or Closing Disclosure. Compare the bottom-line total of all title-related costs.
• Assuming a new build has no history. The land and the work done on it still do.

More on buying in Nevada

• What does a VA loan cost at closing in Las Vegas?
• What are the steps to buying a house in Nevada?
• Do you need a Realtor to buy a house in Nevada?

Sources

• Consumer Financial Protection Bureau, What is owner's title insurance? (last reviewed October 19, 2023)
• Consumer Financial Protection Bureau, What is lender's title insurance? (last reviewed September 11, 2024)
• Consumer Financial Protection Bureau, Your Home Loan Toolkit (closing agents and title insurance)
• U.S. Department of Veterans Affairs, VA Home Loan Buyer's Guide (lender's and owner's title insurance)
• Nevada Revised Statutes Chapter 692A, Title Insurance (NRS 692A.023, 692A.028, 692A.100, 692A.120), Nevada Legislature

Frequently asked questions

Do I need title insurance when buying a house?

If you have a mortgage, your lender will usually require a lender's title insurance policy. An owner's policy is optional, but it is the policy that protects your own investment in the home.

What does owner's title insurance cover?

It protects you if someone sues and says they have a claim against the home from before you bought it, such as a previous owner's unpaid taxes or a contractor who says they were not paid.

Does the lender's title policy protect me?

No. The CFPB says the lender's policy protects the lender and the amount it loaned you. It does not protect your equity.

Do I need title insurance if I pay cash?

No one requires it, because there is no lender. An owner's policy would be your only title coverage, so weigh its one-time cost against how much of your own money is in the home.

Can the seller choose my title insurance company?

No. The CFPB says the seller cannot require you to buy a title insurance policy from a particular title company.

How are title insurance rates set in Nevada?

Under NRS 692A.120, each title insurer files its rate schedules and policy forms with the Commissioner of Insurance, and they cannot be used until approved.

Looking at a Loan Estimate and not sure which title lines are yours? Send it over and I will walk you through what each one protects. You can find me at homesbyjrod.com.

The information in this article comes from CFPB materials, VA's Home Loan Buyer's Guide, and Nevada Revised Statutes Chapter 692A, checked on October 27, 2026. Laws, policies, and lender requirements can change, so confirm with your title company, escrow officer, and lender. This is general education, not legal, insurance, or financial advice.