It is the policy of our company to provide affirmative coverage under loan policies when minor encroachments are present. Minor encroachments are defined as encroachments of improvements over minimum building setback lines (MBSL) or the encroachment of improvements onto easements. For reference purposes, such encroachments may be no more than a few inches over the MBSL requirements. Encroachments of fences and gravel drives onto easements or over boundary lines may be insured if they are less than 3 feet. Gross encroachments of improvements (10% or more over the MBSL requirements) such as concrete retaining walls, etc., should be treated on a case-by-case basis. Please contact Agents National Title’s underwriting counsel for affirmative coverage involving more severe encroachment problems. You may proceed with the following affirmative coverage when warranted by the above criteria: Describe the encroachment under Schedule B of the commitment or policy, then add the following:
This policy insures the insured against loss or damage the insured shall sustain in the event of a final order of a court of competent jurisdiction that compels removal of the encroachment described in this exception.
As an alternative, the same type of affirmative coverage may be provided (if underwriting requirements are satisfied) by attaching an endorsement to the policy which refers to the endorsement exception on Schedule B and uses the same basic affirmative insurance language mentioned above.