In this article, we are going to explain the ALTA encroachment endorsements and when to use them when underwriting title insurance.
Encroachment Endorsements Explained
The ALTA 28.1-06 Endorsement provides coverage against loss by reason of an encroachment of any Improvement on the Land (1) onto adjoining land, or (2) onto that portion of the Land subject to an easement. It also provides insurance by reason of enforced removal of such encroachments. In addition, the endorsement provides coverage against loss by reason of any Improvement located on adjoining land encroaching onto the Land. Section 4 of the endorsement allows the Company to designate encroachments listed as Exceptions on Schedule B for which it will not provide insurance under this endorsement. The ALTA 28.2 provides similar coverage, but allows for the specific “Improvements” to be more particularly itemized. Reviewed carefully, these
Endorsements approximate the Encroachment portion of the coverage that was provided in the “Comprehensive” Endorsement.
The ALTA 28.3 Endorsement provides similar coverage, but is used for land under development and provides coverage with respect to “Future Improvements,” as more fully defined in the endorsement.