Endorsements: Form 2068-06 Instructions

NOTES:

Coverage: This endorsement insures a lender against loss or damage by reason of any undisclosed assessments for street improvements, either under construction or completed on the policy’s effective date that are not already listed in Schedule B, but could affect the priority of the mortgage.

Procedure: This endorsement may be issued on Loan Policies. To issue this endorsement, review both of the specific property being insured and of any street adjoining the property. The analysis must consider various matters, such as whether any street improvements are under construction or have been recently completed which might later generate an assessment lien. Before issuing this endorsement, the following requirements must be met:

1.      Verify the existence of existing assessment liens by an appropriate tax search.

2.      Verify by inspection, survey, or affidavit there are no recent street improvements adjoining the premises.

3.      Verify with the applicable municipal department that there have been no assessments; and

4.      Verify that the examination of the public records does not evidence improvements or assessments.

Questions? Contact an Underwriter.