Nevada Property Insurance Contracts (NRS 691A)

Chapter 691A in the Nevada Code Structure

If NRS Chapter 681A tells regulators what kind of insurance is being sold, Chapter 691A tells them how Nevada property insurance contracts must behave once issued on risks located in the state. The chapter is short—five operative sections—but each one addresses a real producer workflow: binding a policy, explaining manufactured-home options, counseling a borrower on lender insurance demands, and discussing wildfire availability in high-risk counties.

Every section in this chapter assumes you already know that general contract rules—policy delivery, cancellation, nonrenewal, claim practices, and unfair trade prohibitions—live primarily in NRS 687B and related titles. Chapter 691A adds property-specific mandates on top of that foundation.

NRS 691A.010 — Applicability of Other Provisions

NRS 691A.010 states:

All contracts of property insurance covering subjects located in this state are subject to the applicable provisions of chapter 687B of NRS (the insurance contract), and to other applicable provisions of this Code.

Translation for producers: When you issue a homeowners policy on a Las Vegas residence, a commercial property policy on a Sparks warehouse, or a dwelling fire policy on a rural Nye County cabin, the contract is governed by:

1. NRS 687B — Nevada's insurance-contract chapter (notice requirements, claim handling standards, policy provisions, and related consumer protections that apply across property lines); and
2. Other applicable code sections — including unfair practices, guaranty association, rate regulation, and the 691A rules in this chapter.

Exam angle: If a question asks where Nevada property policies pick up general contract law requirements, 691A.010 is the bridge statute pointing to 687B. Do not answer with auto financial responsibility (690B) or surplus lines (685A) unless the fact pattern says so.

NRS 691A.020 — Manufactured and Mobile Homes: Replacement Value Offer

Nevada has a large inventory of manufactured and mobile homes, especially outside the Las Vegas and Reno metros. NRS 691A.020 imposes a mandatory offer rule on insurers writing personal lines property insurance on qualifying homes:

Who Must Offer What

Each insurer that provides a personal line of property insurance covering a manufactured home or mobile home in Nevada that was manufactured within the immediately preceding 15 years must offer the insured—on a Commissioner-approved form and in addition to any other insurance—the option to purchase coverage that pays the replacement value of the home in the event of a total loss, including reasonable costs for:

• (a) Transporting and installing the replacement manufactured home or mobile home; and
• (b) Debris removal.

Key Limitations and Exceptions

Worked Scenario: Pahrump MH-3 Policy

Carlos buys a manufactured home built 12 years ago and requests an MH-3 policy through your agency. The insurer must present the 691A.020 replacement-value option on the approved form—even if Carlos also buys standard ACV settlement. If Carlos declines, document the offer. If the home were built 17 years ago, the mandatory offer rule does not apply. If the bank force-places coverage after a lapse, 691A.020 does not apply to that creditor-placed policy.

Producer duty: Explain that replacement value under this statute includes moving and setting the new unit and debris removal after a total loss—costs that standard ACV settlement often undervalues.

NRS 691A.030 — Lender Insurance Requirements Capped at Replacement Value

Borrowers frequently confuse loan amount with insurance limit. NRS 691A.030 protects mortgagors and deed-of-trust grantors:

1. A lender may not require a borrower, as a condition of obtaining or maintaining a loan secured by real property, to provide property insurance on improvements to real property in an amount that exceeds the reasonable replacement value of the improvements.

Defined terms matter:

• Borrower — mortgagor, grantor of a deed of trust, or other debtor;
• Improvement to real property — a fixture, building, or other structure attached to real property and intended as a permanent addition;
• Lender — mortgagee, beneficiary under a deed of trust, or other secured creditor.

Important nuance: The cap applies to improvements, not land. A lender may still require coverage consistent with the replacement value of the house, but cannot force the borrower to insure improvements for the full purchase price when that price includes land or market premium above replacement cost. Producers counseling new homeowners in rising markets (Henderson, Reno) should know borrowers may push back on excessive lender insurance demands citing 691A.030.

NRS 691A.035 — Wildfire Coverage Framework (2025)

Wildfire risk dominates Nevada property conversations—from Washoe Valley brush zones to Great Basin rangeland interface. Effective 2025, NRS 691A.035 gives insurers explicit wildfire tools:

1. Wildfire May Be Excluded

An insurer that issues a property insurance policy may exclude the peril of wildfire from coverage provided under the policy.

2. Standalone Wildfire Policies Allowed

An insurer may issue a property insurance policy that solely covers wildfire, subject to other applicable title provisions. Such a policy may be offered:

• (a) On a standalone basis; or
• (b) In coordination with a policy that excludes wildfire under subsection 1.

This split-market design lets carriers manage concentration risk while still giving consumers a path to wildfire protection—often through a separate insurer or surplus arrangement in practice.

3. Definition of Wildfire

The statute defines wildfire as:

An unplanned and uncontrolled fire in an area of combustible vegetation that originated from outside any residential or commercial property.

Insurers may use a different definition if the Commissioner has approved the variance.

Producer Impact Table

Cross-link: NRS 679B.130 separately authorizes the Commissioner to create wildfire mitigation incentive programs with insurers. 691A.035 governs coverage structure; mitigation programs govern premium credits for hardening—different statutes, both exam-relevant in Nevada context.

NRS 691A.040 — Commissioner Regulations

The Commissioner may adopt regulations to carry out Chapter 691A. Expect approved forms for the manufactured-home replacement offer (691A.020) and future wildfire-related filing guidance under 691A.035 to appear in NAC (Nevada Administrative Code) rather than in the bare statutes.

Putting 691A Together on a Single Client File

Consider a 14-year-old manufactured home in Fernley financed with a deed of trust:

1. 691A.010 — Policy is subject to 687B contract rules plus 691A.
2. 691A.020 — Insurer must offer replacement-value option including transport, set, and debris removal on Commissioner form.
3. 691A.030 — Lender cannot demand insurance on the structure above reasonable replacement value (land excluded).
4. 691A.035 — Insurer may exclude wildfire on the base policy but might offer a companion wildfire policy; explain both documents at sale.

Exam Traps

1. 691A.020 applies only to homes built within the last 15 years—not every manufactured home.
2. Creditor-placed policies are exempt from the replacement-value offer.
3. Replacement value under 691A.020 excludes land—do not add lot value into the mandatory offer calculation.
4. 691A.030 limits insurance on improvements, not the borrower's total financial obligation.
5. Wildfire exclusion is expressly permitted in Nevada—do not assume wildfire must stay in the base HO form.
6. Bridge statute for general contract law is 691A.010 → 687B, not 681A.

Chapter 691A is small on the page but dense at the kitchen table. Master the manufactured-home offer, the lender cap, and the wildfire split-policy framework, and you can serve Nevada property clients accurately while capturing the Property Only statute items the exam actually scores.