Am I obligated to buy Owner's Title Insurance in WA

[Andrew Kniffin]

Hello all-

I am buying a personal residence in Seattle, Washington this week. I received my HUD form on Friday.

The HUD defaulted to include a ~$1,940 Owner's Title Insurance policy. I told my agent that I would rather NOT pay that amount, and instead keep the funds as cash. (Basically a 'self-insurance' strategy.)

My RE Agent said that WA law **requires** that I get the policy, and so I am not allowed to keep the cash.  

Can anyone help me find out whether this is true?  My Agent seems educated on the market, but she also sounded as though she'd never run across this before.  

Thanks for your input.  

-Drew