Title Insurance – You have a choice

When you take out a mortgage to buy a home, your lender is going to require you to purchase title insurance. Title insurance protects you and your lender financially from any unknown claims or defects in the title of the property you are buying.

There are two types of title insurance policies, the owner’s policy and the lender’s policy. In Nevada, the buyer will traditionally purchase the insurance for the lender, and the seller will purchase the insurance for the buyer, but this can be negotiated.

The cost of title insurance can vary significantly between agencies. You do not have to use the company recommended to you.

The Nevada Division of Insurance provides a guide to title insurance that includes sample rates to help you as you shop. Prices for both an owner’s and lender’s policy combined can range from $882 to $1,385 for $150,000 worth of coverage in Clark County.

This is why it’s important to shop around to find title insurance that fits your needs and budget.

How does title insurance work?

When you purchase title insurance, the agent or company will search public records to document the chain of ownership of a property. If any liens or defects are found, the title company will require you to eliminate them before issuing a title policy.

Once the company believes that the property title is clean, they will issue you and your lender title insurance policies. These insurance policies protect you and your lender financially from any unknown claims or defects existing at the time of purchase.

For more information about title insurance read the Nevada Consumer's Guide to Title Insurance.