Endorsements are a discretionary means to expand owner and/or loan policy coverage…
An insured may wish simply to change standard policy coverage to a more comprehensive form. For example, most purchasers request (by stipulation in the purchase contract) that their owner’s policy be issued with “owner’s extended coverage” (OEC).
An insured may request an endorsement in order to undo a contraction of policy coverage that arises by circumstance. For example a given property may be affected by a mineral interest reserving for the holder of the interest the right to extract sub-surface minerals. Matters related to the reserved interest would otherwise be an exception to policy coverage. However, an insured may wish to endorse their policy to insure against damage to surface structures resulting from the removal of sub-surface minerals.
An underwriter may make expansion of coverage contingent upon receipt of additional documents, information, or assurances. For example, deletion of the (standard) survey exception from an owner’s policy may be contingent upon receipt of an acceptable survey – and the policy would take exception to adverse matters appearing on the survey.
Coverage may be expanded for a lender’s policy, but not the owner’s policy. For example, if a deck on an insured property encroaches onto an adjacent property, an underwriter may agree to insure the lender for loss arising from forced removal of the deck, but refuse to insure the owner.
An underwriter may decline to expand policy coverage as a result of its determination that the risk of loss would be too high. For example, in Colorado it would be unusual to offer mechanics’ lien coverage to a lender for a construction loan on a project that was already in progress.
Click any of the links below to view a list of endorsements that are typically issued with the indicated policy or transaction type and to view specimen endorsements.
♦ Owner Policy (Residential & Commercial)
♦ Residential Loan Policy
♦ Commercial Loan Policy
♦ Construction Loan
♦ Loan Modification
♦ Reverse Mortgage