What is the purpose of a title endorsement?

A title endorsement serves a vital role in the title insurance process by modifying or adding coverage to a title insurance policy. When a property is being bought or sold, the title insurance policy provides protection to the buyer or lender against potential title issues that may arise. However, standard policies might not cover all specific circumstances or concerns related to a property.

Title endorsements allow the insurer to expand coverage to address unique risks associated with a specific transaction or property. For example, if there are zoning issues, easements, or specific liens that are not typically covered in a standard title policy, an endorsement can be issued to provide assurance against those particular risks. This helps ensure that the insured party has proper and tailored protection that meets their needs, enhancing the security and reliability of the title insurance.

Thus, title endorsements are crucial for providing clarity and extending protections, offering peace of mind to the parties involved in the transaction.