There is a wide range of ALTA endorsements available and it can be difficult to keep track of all of them. In this article, we are going to explain the ALTA identified risk endorsement and when it can be used in either a lender’s or an owner’s title insurance policy.
Identified Risk Endorsement
The ALTA 34-06 endorsement is the standard form to provide “affirmative coverage” which indemnifies against loss or damage occasioned by certain title matters of record which are not likely to cause a loss of title or be enforced against the named insured. This endorsement replaces the practice in some areas of reflecting affirmative coverage language in Schedule B following an exception.
The endorsement is intended for those situations in which the Insurer is unwilling to delete a certain exception from Schedule B of a title policy, but believe the risk of loss is so slight that the Insurer is willing to provide a limited form of indemnification with respect to the specific defect, lien, encumbrance or other matter excepted to.
This endorsement provides coverage in the event that a final court order or decree enforces an Identified Risk in favor of an adverse party. It also insures, subject to certain conditions stated in the endorsement, against loss or damage as a result of the release of a prospective purchaser or lessee of the Title or lender on the Title from the obligation to purchase, lease or lend as a result of the Identified Risk.
Expert Help with Your Commercial Transaction
For expert help with your next commercial real estate transaction, contact the experts at Commercial Partners Title Company. With decades of experience behind us, we are the recognized experts in commercial title insurance in Minnesota and across the country. Contact us today to learn more about our full range of services and how we can help you accomplish your goals. You can find us at our main offices located in downtown Minneapolis. We also work with clients across the United States.