What are endorsements?
Title Insurance Endorsements are an addition to or limitation of title insurance coverage that is attached to a title insurance policy. Endorsements provide coverage that tailors the policy to fit the needs of the insured. There are two types of title insurance policy endorsements:
- On the Lender’s Title Policy, the lender’s underwriters will have certain endorsement requirements to underwrite a loan.
- On the Owner’s Title Policy, certain endorsements can be added to the policy at the buyer’s request.
Title policy endorsements are managed by the American Land Title Association (ALTA), Texas Land Title Association (TLTA), and the Texas Department of Insurance (TDI).
As the buyer, what endorsements are available to add to my Title Policy?
Survey Amendment (T-1R/T-1)
This endorsement is on your contract as an option and is normally discussed with you by your agent. The unchanged exception reads as follows: Any discrepancies, conflicts, or shortages in area or boundary lines, or any encroachments or protrusions, or any overlapping of improvements. Provided that underwriting requirements are met, we may amend the Schedule B exception with respect to area and boundaries to read simply: Shortages in area. We require a suitable survey plat of the property we are insuring, and in cases where we are furnished a prior survey, we also require an affidavit from the owner affirming no changes have been made to the property. Additional requirements may be added once the documents have been furnished. The cost for this amendment is 5% of the Owner’s Policy premium with a $20 minimum. (See our Shortages In Area page for a more in-depth explanation.)
Restrictions, Encroachments, Minerals Endorsement (T-19.1)
This endorsement provides insurance coverage relating to violations of enforceable restrictions, violation of building setbacks, reversionary rights, encroachments upon and beyond the property, and damage to improvements resulting from surface mineral development. The cost for this endorsement for residential property is 10% of the Owner’s Policy premium if the endorsement is purchased alone, or 5% of the premium if purchased in conjunction with the Survey Amendment of the area and boundaries exception. For non-residential property, the endorsement is 15% of the Owner’s Policy premium, or 10% if purchased in conjunction with the survey amendment, with minimum of $50.
Minerals and Surface Damage Endorsement (T-19.2/T-19.3)
This endorsement is more specific in scope than the T-19.1 and offers insurance only as to damage to improvements resulting from surface mineral development. It is issued upon request of the insured party. The premium for this endorsement is $50. Note that this endorsement is issued for each tract insured, so policies for multiple tracts may require multiple endorsements. This endorsement is available when the following exception is present in Schedule B: “All leases, grants, exceptions or reservations of coal, lignite, oil, gas and other minerals, together with all rights, privileges, and immunities relating thereto, appearing in the Public Records whether listed in Schedule B or not. There may be leases, grants, exceptions or reservations of mineral interest that are not listed.”
Championship Title is ready to handle your closing and answer all of your endorsement questions. Whether you’re in town or halfway across the country, we can serve you from the comfort of your laptop. Set up your online closing today.