What is an endorsement?

It is a provision added to an insurance policy whereby the scope of the coverage is restricted or enlarged.  In most cases, it provides additional coverage.  Endorsements are available for a one time premium for owners and lenders.

Examples of Available Endorsements:

Gap Endorsement –this covers the time period between the commitment issuance date and the date of the policy.  When notified of a closing date, we will search the records between the commitment date and closing, looking for anything new of record therefore “reducing the gap” as much as possible and reducing the risk.  We recommend this endorsement for each transaction and it is available to buyers and lenders.

Legal Description Equivalency Endorsement – is available for owner and loan policies.  It insures the insured owner or lender that the land described in Schedule A is legally identical with the land described in another instrument, despite the fact that there is different language in each description.  This endorsement is usually requested for loan policies when the mortgage legal description slightly varies from the legal description in the commitment.

Encroachment Endorsement – is available for owners and lenders.  This insures against a final court order which requires the removal of a structure because of its encroachment onto adjoining private property or onto an easement located on the land.  Factors we look at before considering issuing this endorsement are the size of the encroachment, the length of time it has been in existence and the permanence of the structure.

ALTA Endorsement Form 1 (street assessments) - is available only for lenders.  It is designed to insure the lender against loss or damage which the lender might sustain by reason of any undisclosed assessments for street improvements, either under construction or completed at the date of policy, which have or could gain priority over the insured mortgage.

These endorsements are just a few of the many available.  If you believe there is a potential liability with your title commitment or policy, there may be an endorsement not mentioned above that may reduce your risk.  Please let us know of your concerns and we will do the research for you.  Before any endorsement is issued, we must review and analysis various matters contributing to the request of an endorsement.