When you purchase a home or a piece of land, title insurance is an important way to protect yourself against unexpected claims or defects that could threaten your ownership rights. But did you know that a standard title insurance policy doesn’t always cover every possible risk?
That’s where endorsements come in.
Endorsements are additional protections you can add to your title insurance policy to address specific concerns or unique aspects of your property. Let’s break down what they are, why they matter, and when you might need them.
What Is an Endorsement?
In simple terms, an endorsement is a customized add-on to your title insurance policy. It modifies or expands your policy’s coverage, giving you extra protection beyond the standard terms.
Endorsements are especially useful when your property has unique features or when you need coverage for specific risks not automatically included.
Why Might You Need an Endorsement?
Each property is different. Certain situations or improvements on your land might create additional risks that a standard policy won’t cover. Examples include:
- Access issues: If your property doesn’t have obvious or guaranteed legal access to a public road, an endorsement can help protect against future disputes.
- Survey matters: Endorsements can address encroachments or boundary line questions revealed in a property survey.
- Zoning violations: Some endorsements offer protection if a structure violates zoning laws and must be removed or modified.
- Mineral rights or subsurface issues: If someone else holds mineral rights beneath your land, endorsements can help clarify or protect your surface rights.
- Restrictive covenants: These endorsements cover certain violations of restrictions listed in your deed or neighborhood rules.
Common Endorsements
Here are a few examples of endorsements you might encounter:
- Access and Entry Endorsement: Ensures that your property has legal access to a street or road.
- Survey Endorsement (ALTA 9 or similar): Protects against loss from certain encroachments or discrepancies found in a survey.
- Condominium or PUD Endorsements: Provide additional protections specific to condominium or planned unit development ownership.
- Future Advance Endorsement: Common in commercial transactions, it covers future loan advances secured by the property.
How Much Do Endorsements Cost?
The cost of endorsements varies depending on the type and complexity of the added coverage. Some may involve a flat fee, while others are based on the property value or loan amount.
It’s a small price to pay for the peace of mind that comes from knowing you’re covered against unexpected surprises.
Do You Need an Endorsement?
Whether you need endorsements depends on your property’s characteristics and your lender’s requirements. In many cases, lenders will require certain endorsements to protect their interest in the property, while others are optional and chosen for added protection by the buyer.
Before closing, your title company or real estate attorney can help you review available endorsements and determine which ones make sense for your situation.
We’re Here to Guide You
At Pioneer Title, we know that no two properties — or transactions — are exactly the same. Our experienced team will help you understand which endorsements might be necessary or beneficial for your peace of mind and long-term security.
If you have questions about title insurance or endorsements, don’t hesitate to reach out. We’re here to help you feel confident and protected every step of the way.
