The ALTA 17.2 Utility Access endorsement provides insurance against loss or damage in the event that there is a lack of a right of access to utilities or services that are specifically identified in the endorsement. The ALTA 17.2 endorsement comes pre-printed with check boxes for the following utility services: water, electric, natural gas, sanitary sewer, telephone, and stormwater drainage. There are also check boxes where other desired utilities can be specified by name.
The endorsement does not guarantee that the utilities are actually in place and service the land in question, but rather assures against a gap between the boundaries of the land and the public rights-of-way or easements through which the identified utilities may run. It also assures against a gap between the boundaries of those rights of way and any beneficial utility easements that are necessary in order to provide the land with the indicated utility services. Finally, the endorsement assures against a termination by the grantor or its successor of the rights-of-way or easements in which the indicated utilities run.
Oftentimes utilities are situated in public rights-of-way in metropolitan areas. In other circumstances, utilities will often run alongside public rights-of-way, often within an easement area. There are times that utilities run along easements that are situated on private land. Accordingly, the coverage is typically determined by reference to a map or survey demonstrating where the utility lines are situated relative to the subject property. In many cases the ALTA 17.2 endorsement will require that a survey be submitted to the title company for review to confirm the utility locations, but this is not always the case.