Title Tuesday: What is an Endorsement on a Title Policy?

Most homeowners have never read a title insurance policy and are unfamiliar with their coverages until they have a specific problem with the title to the property.

An American Land Title Association (ALTA) title insurance policy provides state-specific, standardized insurance coverage that protects against a wide variety of title problems while excluding coverage from a list of uncommon issues. The policy determines what will be covered or excluded from the overall coverage of the property.

An endorsement to a title policy extends coverage over one of the items that the standard policy excludes. Each title endorsement extends insurance coverage over a specific, defined risk that helps tailor the policy to fit the needs of the insured for their specific transaction. There are two categories of endorsements listed on title policies:

1. Underwriter’s Required Endorsements –  The lender’s underwriters have specific endorsements that must be added to the title policy for them to underwrite a loan.  
2. Borrower’s Requested Endorsements – While uncommon, the borrower can request for certain endorsements to be added to the policy if they want to extend coverage on a property.

It’s important to note that although the American Land Title Association (ALTA) drafts and sets guidelines for the different types of endorsements, each state has its own versions with varying language to best accommodate the variations between laws of different states. In most states, to best protect the consumer, endorsement forms are reviewed and approved by the department of insurance before they can be used.

Please view the endorsement examples listed below for reference.  

Endorsement Example – Encroachments

Endorsement Example – EPA

Thank you for choosing Advocus Title.  For any questions, feel free to reach out to the Advocus Title Customer Support team via form, email, or phone (1-708-578-6776 ).