Essential Insurance Coverage

Every Nevada homebuyer needs multiple types of insurance. Use this checklist to ensure complete protection from day one.

Coverage Checklist

  • Homeowners Insurance
  • Title Insurance
  • Private Mortgage Insurance (if applicable)
  • Flood Insurance (if needed)
  • Earthquake Insurance (optional)
  • Home Warranty (optional)

Homeowners Insurance

REQUIRED

Protects your home structure, personal belongings, and liability. Required by all mortgage lenders before closing.

What It Covers:

  • Dwelling coverage: Repairs/rebuilds home structure after covered events (fire, windstorm, hail)
  • Personal property: Replace belongings (furniture, electronics, clothing)
  • Liability protection: Legal fees if someone is injured on your property
  • Loss of use: Temporary housing if home is uninhabitable

Average Nevada Cost:

$1,200-$1,800/year

Las Vegas metro average. Actual cost depends on home value, coverage limits, deductible.

Action Items:

  • Get quotes from 3-5 insurers at least 30 days before closing
  • Ensure coverage equals replacement cost (not just home value)
  • Bundle with auto insurance for discounts (10-25% savings)
  • Provide proof of insurance to lender before closing

Title Insurance

REQUIRED

Protects against defects in property title that could threaten your ownership. One-time fee paid at closing.

Two Types of Title Insurance:

Lender's Policy

Required by lender. Protects lender's interest up to loan amount.

Cost: ~$500-$1,000 in Nevada

Owner's Policy

Optional but recommended. Protects your equity for life of ownership.

Cost: ~$300-$600 additional

What It Protects Against:

  • Undisclosed heirs claiming ownership
  • Forged documents or fraud in chain of title
  • Liens from previous owners (unpaid taxes, contractors)
  • Boundary disputes or survey errors
  • Clerical errors in public records

Action Items:

  • Lender will order lender's policy (included in closing costs)
  • Strongly consider purchasing owner's policy (one-time cost, lifetime protection)
  • Review preliminary title report during escrow

Private Mortgage Insurance (PMI)

IF DOWN PAYMENT < 20%

Required on conventional loans with less than 20% down payment. Protects the lender if you default.

Important: FHA loans have MIP (mortgage insurance premium) instead of PMI. VA loans have no mortgage insurance. PMI only applies to conventional loans.

Cost & Details:

  • Cost: 0.5% to 1.5% of loan amount annually (roughly $50-$150/month per $100K borrowed)
  • Can be removed: Once you reach 20% equity (pay down or home appreciation)
  • Automatic cancellation: At 78% LTV (loan-to-value ratio)

Action Items:

  • Calculate PMI cost with your loan officer
  • Consider 20% down payment to avoid PMI (if possible)
  • Track home value to request PMI removal when eligible
Calculate Your PMI Cost

Essential Insurance Types for Nevada Homebuyers

Understanding which insurance policies you need protects your investment and ensures you meet lender requirements for your mortgage.

Homeowners Insurance (HO-3)

REQUIRED

Standard homeowners insurance protects your Nevada home against fire, theft, vandalism, and natural disasters. Lenders require this before closing.

What It Covers:

  • Dwelling coverage (structure)
  • Personal property
  • Liability protection
  • Additional living expenses

Nevada Average Cost:

$1,428/year

Las Vegas: $1,350 | Reno: $1,510

*National average: $1,899/year - Nevada is below average

Nevada-Specific Consideration: Desert climate means lower flood/hurricane risk but consider wildfire coverage and AC/HVAC protection due to extreme heat.

Title Insurance

REQUIRED

Protects against ownership disputes, liens, and legal claims on your Nevada property. One-time premium paid at closing.

Two Types:

  • Lender's Policy (required) - protects lender
  • Owner's Policy (optional) - protects you

Nevada Cost:

$2.50-$4 per $1,000

Example: $400k home = $1,000-$1,600

Pro Tip: Owner's title insurance is highly recommended in Nevada. Protects against undiscovered liens, forged documents, errors in public records, and ownership disputes.

Private Mortgage Insurance (PMI)

CONDITIONAL

Required for conventional loans with less than 20% down payment. Protects lender if you default. Can be removed once you reach 20% equity.

When Required:

  • Conventional loans with <20% down
  • FHA has MIP instead (different rules)
  • VA loans don't require PMI/MIP

Nevada Cost:

0.5%-1.5% annually

Example: $400k loan = $167-$500/month

Removal Options: Request PMI removal once you reach 20% equity through payments or appreciation. Learn how to remove PMI in Nevada.

Homebuyer Protection Guide

Insurance Checklist for New Homebuyers

Protect your Nevada home investment with the right insurance coverage. Complete checklist covering homeowners insurance, title insurance, PMI, and other protection needed when purchasing a home.

Get Pre-Approved (702) 660-7000
Complete Protection Guide

Insurance Checklist for New Homebuyers

Protect your Nevada home investment with the right insurance coverage. Complete guide to homeowners insurance, title insurance, PMI, and other essential protections when purchasing a home in Las Vegas or Reno.

Get Pre-Approved (702) 660-7000