What can trigger the need for additional endorsements in a title insurance policy?

The need for additional endorsements in a title insurance policy can be triggered by newly discovered encumbrances. An encumbrance is any claim or liability attached to the property that may affect its value or marketability, such as liens, easements, or restrictions. When a title search or examination reveals an encumbrance that was previously unknown, it may create a risk for the title insurer.

To provide further protection, the insurer may choose to issue endorsements that would specifically cover the newly identified risks associated with these encumbrances. Endorsements can modify the coverage of the title insurance policy to address specific issues that arise during the title examination process or that come to light after the policy is issued. This proactive measure helps protect both the insured party and the title company from unexpected liabilities that could arise from the encumbrances.

The other options, while they can impact the real estate market or contract negotiations, do not inherently create a necessity for additional endorsements in the same way that newly discovered encumbrances do.