In our previous blog What Does A Title Company Do? we explained that title insurance policies are created to protect homeowners and lenders from conflicts that may arise from the property's previous owners. However, what if you want additional coverages? That is when a title policy endorsement comes into play and takes protection one step further.
Title insurance endorsements add additional protection by modifying some exceptions or adding property-specific coverage to the current policy. Selecting the right endorsement can prevent costly expenses and even the loss of your home. There are lots of real estate title endorsements to choose from to custom fit the coverage to your specific property, situation and needs. So let's break some down...
Easements And Encroachments Endorsements for easements and encroachments protect against loss and damage if there is an encroachment or easement violation that results in the removal or alteration of the homeowner’s property.
Minerals And Subsurface Substances This type of endorsement covers damage or loss if the home must be altered or removed because an existing right allows an entity to use the land for the extraction or development of certain minerals or other substances.
Survey Coverage Survey coverage protects the property when there is a discrepancy between the endorsement and policy when identifying the land that’s insured. It covers the homeowner or lender if the land identified and insured in the insurance policy is not the same land identified on the survey in the endorsement.
Access And Entry The access and entry endorsement helps ensure the homeowner has direct or indirect access to a public street and protects against loss or damage if they do not.
Zoning A zoning endorsement helps protect from loss or damage caused by a court ordering the homeowner to alter or remove the home or prohibiting them from using the home for a specific purpose because it violates a specific zoning law.
Contiguity The contiguity endorsement is common for insured land that contains multiple parcels that make up one property. This type of endorsement ensures there are no other parcels or gaps that intervene and cause the insured parcels to become detached from one another. It covers any loss that occurs when the insured parcels are not adjoining because there are other parcels, gaps or gores separating them.
Most title insurance policies will cover many common needs. However, some properties due to their location or their features may require additional coverage. The additional coverage needed will depend on the property.