Endorsements to title policies serve to modify or amend the wording or language of the title policies, thereby expanding – or sometimes limiting – the coverage afforded under such title policies. This enables insurers to tailor coverage to meet specific transaction or customer needs. Affirmative coverage is best added to a policy by virtue of endorsements rather than by additions to Schedule B. In some states, however, affirmative coverage within Schedule B is not permitted and coverage must be given through endorsement to policy.
The most common endorsements are ALTA pre-printed endorsements which include:
ALTA 1 Street Assessments
ALTA 2 Truth in Lending
ALTA 3 Zoning
ALTA 3.1 Expanded Zoning
ALTA 4 Condominium
ALTA 5 Planned Unit Developing
ALTA 5.1 Expanded Planned Unit Development
ALTA 6 Variable Rate Mortgage
ALTA 6.1 Variable Rate Mortgage Negative Amortization
ALTA 7 Manufactured Housing Unit
ALTA 8.1 Environmental Protection Liens
ALTA 9 Comprehensive (violation of covenants, restrictions)
Other endorsements, such as those which are state-specific, may also be utilized. These may include endorsements which provide insurance for contiguity; deletion of creditor’s rights; additional interest; shared appreciation; usury; zoning; navigational servitude; filled-in lands; foundation; easements; future advances; revolving credit; partnerships; non-imputation; tie-ins; doing business; and several others. Some endorsements may be prohibited from use in certain states.
Following is an overview of the most commonly requested endorsements. (To obtain a complete listing of endorsements approved for use in your state and the underwriting requirements for issuance of these endorsements, please contact your local Agents National Title underwriting counsel.)