Understanding the nuances of title insurance policies is crucial for real estate owners and investors. The primary purpose of these policies is to address risks associated with issues such as title, liens, taxes, survey matters, and more.
Title policies build on a foundation of protection but contain certain exclusions that affect the coverage provided. These gaps in coverage present potential risks that property owners and lenders must address.
In addition to these exclusions, certain exceptions further limit coverage. These exceptions are mostly matters of public record and include:
Local government assessments. Public utility easements. Separation records of mineral resources.
It is not uncommon for such issues to pose risks that are of concern to prospective owners and lenders.
The endorsement provides coverage for the risks arising from the identified exceptions as well as any exclusions that supplement the covered risks stated in the policy.
Endorsements are crucial to a comprehensive commercial real estate title insurance strategy. Endorsements address specific exclusions, special exceptions and unique property risks. Endorsements customize the base policy to precisely meet the nuanced needs of property owners, investors and lenders.
Understanding and utilizing these guarantees can provide significant protection for your commercial real estate investment.
To learn more, join underwriters Jonathan Buss and Kirk Strandjord on Thursday, June 20 for the second session of the 2024 Title Camp CLE Webinar Series, “Insuring Commercial Real Estate.”