What purpose do endorsements serve in a title insurance policy?

Endorsements in a title insurance policy serve to modify the original coverage by addressing specific situations that may arise after the policy was issued, such as newly discovered encumbrances. This means that when a new issue is identified that could affect the title, an endorsement can be added to the policy. The endorsement operates to ensure that the insurance covers this new finding, thereby adjusting the terms of the coverage to reflect the current condition of the title.

Additionally, endorsements can provide additional coverage or clarify existing terms, making them crucial for protecting the policyholder against new risks that were not apparent at the time the original policy was issued. This function is essential because it helps maintain the relevance and comprehensiveness of the title insurance policy in light of changing circumstances relating to the property title.