What Are Title Insurance Endorsements? Types Explained

When you purchase title insurance, you receive a standard policy that covers common title defects like forged deeds, undisclosed heirs, or recording errors. But standard policies have exclusions and limitations. They don't cover certain risks unless you purchase additional coverage through endorsements.

Think of endorsements like riders on an insurance policy—they modify the base coverage to address specific needs. Your lender might require certain endorsements to protect their loan. Or you might want endorsements to protect yourself from risks that are particularly relevant to your property, like boundary disputes or environmental problems.

At Prospect Title, we've been helping Utah property owners understand and select appropriate title insurance endorsements for 59 years. We know which endorsements lenders require, which ones provide valuable protection, and which ones might be unnecessary for your particular situation. This guide will walk you through the most common endorsements, explain what they protect against, detail costs, and help you determine which ones you need for your Utah property.

What Is a Title Insurance Endorsement?

A title insurance endorsement is a document that amends or adds to your title insurance policy. It either expands coverage to include risks that are normally excluded, or it provides affirmative coverage for specific matters that the standard policy doesn't address.

How Endorsements Work

Standard title insurance policies follow forms developed by the American Land Title Association (ALTA). These forms have been refined over decades to provide broad coverage while excluding certain types of risks that title companies can't reasonably insure without additional investigation or survey work.

Endorsements allow you to customize your coverage by removing certain exclusions or adding affirmative protections. For example:

• The standard policy excludes losses arising from matters that would be shown by a survey. A survey endorsement removes this exclusion if you provide an acceptable survey.
• The standard policy doesn't affirm that your property has legal access to a public road. An access endorsement adds this affirmative coverage.
• The standard policy excludes government regulations like zoning ordinances. A zoning endorsement provides specific coverage for zoning violations.

When Are Endorsements Issued?

Endorsements are typically purchased at closing and are attached to your title insurance policy when it's issued. The title company underwrites each endorsement based on information available at closing, such as surveys, zoning letters, or environmental reports.

It's very difficult—often impossible—to obtain endorsements after closing. Once the policy is issued, the title company has no way to verify conditions that existed at closing. This is why it's important to identify all needed or desired endorsements before your transaction closes.

Owner's vs Lender's Policy Endorsements

Both owner's and lender's title insurance policies can have endorsements, but they work slightly differently:

• Lender's policy endorsements: Lenders commonly require specific endorsements to meet their underwriting guidelines. These endorsements protect the lender's interest in the property and their ability to foreclose if necessary.
• Owner's policy endorsements: Owner's endorsements are optional but can provide valuable protection. If a lender requires a particular endorsement, consider adding it to your owner's policy as well—it usually costs less when bundled.

What Are the Most Common Title Insurance Endorsements?

While dozens of endorsements exist for specialized situations, a handful appear regularly in Utah real estate transactions. Understanding these common endorsements helps you make informed decisions about your coverage.

ALTA Endorsement 9 (Survey Endorsement)

The ALTA 9 endorsement is one of the most frequently required endorsements, especially for commercial properties and higher-value residential transactions. It provides comprehensive coverage for matters that a survey would reveal.

What it covers:

• Encroachments of improvements onto easements or adjoining property
• Encroachments of improvements from adjoining property onto the insured property
• Violations of building setback lines or height restrictions
• Discrepancies in area or boundary lines
• Mineral rights issues (in some versions)
• Access to a public road

Requirements: You must provide an ALTA/NSPS Land Title Survey prepared by a licensed surveyor, typically dated within 90 days of closing.

Cost in Utah: $200-$500 depending on the property value and complexity.

When you need it: Most commercial lenders require it. Residential lenders may require it for properties over a certain value or in certain locations. It's highly valuable for any property where boundaries, encroachments, or easements are concerns.

ALTA Endorsement 8.1 (Environmental Lien)

This endorsement insures against environmental liens or the costs of environmental cleanup becoming liens superior to the insured mortgage or deed of trust.

What it covers:

• Liens for environmental cleanup costs that have priority over your mortgage
• Environmental liens that existed at the policy date but weren't recorded

What it doesn't cover: It doesn't cover the actual environmental contamination or cleanup costs themselves—only liens that might arise from them. You'd need separate environmental insurance for contamination coverage.

Requirements: Minimal; usually no environmental report required for residential properties.

Cost in Utah: $25-$50 for residential; may be higher for commercial.

When you need it: Many lenders require it as a standard endorsement. It's relatively inexpensive and provides peace of mind, particularly for properties with prior industrial or agricultural use.

ALTA Endorsement 2 (Access and Entry)

This endorsement provides affirmative assurance that the property has both physical access and legal right of access to a public road or street.

What it covers:

• Lack of legal right of access from the property to a public road
• Lack of physical access to a public road

Requirements: The title company must verify that the property abuts a public street or has a recorded easement providing access.

Cost in Utah: $50-$150.

When you need it: Important for rural properties or any property where access isn't obvious. In Utah, where many properties have long driveways or access via private roads, this endorsement provides critical protection.

ALTA Endorsement 3.1 (Zoning)

This endorsement insures that the property is zoned for a specific use and that current improvements don't violate zoning ordinances.

What it covers:

• Loss if the property isn't zoned for the use specified in the endorsement
• Loss if the principal structure violates zoning setbacks or height restrictions
• Forced removal or alteration of improvements due to zoning violations

Requirements: A zoning report or letter from the local planning department confirming current zoning and compliance.

Cost in Utah: $75-$200.

When you need it: Common for commercial properties. Residential lenders may require it. Particularly important if you're buying property for a specific use (like running a business from home) and need assurance it's legally permitted.

ALTA Endorsement 5.1 (Planned Unit Development - PUD)

For properties in planned unit developments with homeowners associations, this endorsement provides protection related to the PUD's legal status and your rights as an owner.

What it covers:

• Loss if the PUD isn't legally established
• Loss if you don't have rights to use common areas
• Unenforceability of covenants creating the PUD
• Priority of the mortgage over HOA liens (in some cases)

Requirements: Review of the PUD's declaration, bylaws, and plat.

Cost in Utah: $75-$150.

When you need it: Lenders typically require it for any property in a PUD or community with an HOA. Essential for condominiums and townhome communities.

ALTA Endorsement 22 (Location and Map)

This endorsement identifies the property's location and legal description on a map or survey, reducing the risk of insuring the wrong property.

What it covers:

• Loss if the land described in the policy isn't the land shown on the survey or map
• Incorrect identification of the property location

Requirements: An acceptable survey or map showing the property.

Cost in Utah: $50-$100.

When you need it: Useful for properties with complex legal descriptions or in areas with similar street names where identification mistakes could occur.

What Do Title Insurance Endorsements Cost?

Endorsement costs vary based on the type of endorsement, the risk it covers, the property value, and the underwriter's requirements. In Utah, here's what you can typically expect:

Bundling and Discounts

If you're purchasing both an owner's and lender's policy, adding the same endorsement to both policies usually costs less than the sum of adding them separately. The owner's policy endorsement might be discounted by 25-50% when bundled with the lender's policy endorsement.

Who Pays for Endorsements?

In Utah, custom varies by transaction type and negotiation:

• Lender-required endorsements: The buyer typically pays for endorsements the lender requires on the lender's policy, as these are part of the buyer's loan costs.
• Owner's policy endorsements: If the buyer wants additional endorsements on their owner's policy, they generally pay for them.
• Seller obligations: In some cases, the purchase agreement might allocate certain endorsement costs to the seller, particularly if the endorsement relates to an issue with the seller's title.

These allocations should be addressed in your purchase agreement. At Prospect Title, we can help you understand which endorsements are customary for your transaction and how costs are typically allocated in your area.

Which Title Insurance Endorsements Do I Need?

Determining which endorsements you need depends on several factors: your lender's requirements, your property type, specific risks associated with your property, and your risk tolerance.

Lender Requirements

Start by understanding what your lender requires. Your lender's title insurance requirements will be spelled out in their loan commitment or lender's instructions. Common lender requirements include:

• Residential loans: Environmental lien (ALTA 8.1), and often a zoning endorsement or survey endorsement depending on property value
• Commercial loans: Comprehensive survey (ALTA 9), environmental lien (ALTA 8.1), zoning (ALTA 3.1), access (ALTA 2), and often additional endorsements specific to the property type
• Construction loans: Various endorsements related to mechanics liens, disbursements, and priority

Lender requirements aren't negotiable—if you want the loan, you must purchase the required endorsements.

Property Type Considerations

Different property types face different risks:

Single-family residential: Environmental lien and PUD endorsements (if applicable) are usually sufficient. Consider a survey endorsement if there are boundary questions or if neighboring improvements appear close to your property line.

Rural or acreage properties: Access endorsements are critical. Survey endorsements help ensure boundary lines are correct and that you're getting the acreage you're paying for. In Utah, where mineral rights can be severed from surface rights, consider endorsements addressing mineral rights.

Condos and townhomes: PUD/condo endorsements verify your rights to use common areas and that the homeowners association is properly established.

Commercial properties: Comprehensive coverage through survey, zoning, access, and environmental endorsements. Consider usability endorsements that confirm the property can be used as intended.

Investment properties: Similar to your intended use, but consider endorsements that protect value and marketability since you may want to sell or refinance in the future.

Specific Risk Factors

Evaluate risks specific to your property:

• Older properties: May have zoning nonconformities or encroachments that developed over time
• Properties with prior commercial use: Environmental endorsements become more important
• Properties with complicated access: Shared driveways or access easements warrant an access endorsement
• Properties near property lines: Survey endorsements can prevent boundary disputes
• Properties with HOAs: PUD endorsements protect your rights to common amenities

Mirror Your Lender's Endorsements

A good rule of thumb: if your lender requires an endorsement for their policy, consider adding it to your owner's policy too. The lender requires it because they believe it's a real risk. That same risk threatens your ownership. The incremental cost to add the endorsement to your owner's policy is usually modest when bundled with the lender's policy.

Are There Utah-Specific Title Insurance Endorsements?

While most endorsements use ALTA's standard national forms, some endorsements address issues particularly relevant in Utah.

Water Rights Endorsements

In Utah's arid climate, water rights are critically important, especially for agricultural land, rural properties with wells, or properties with irrigation systems. While not a standard ALTA form, Utah title companies can issue endorsements affirming that specific water rights are appurtenant to the property or that the property has rights to use a particular well or irrigation system.

These endorsements require documentation from the Utah Division of Water Rights showing the water rights, change applications (if applicable), and proof that the rights are tied to the land.

Mineral Rights Endorsements

Utah has significant mineral resources, and mineral rights are often severed from surface rights, especially in rural areas and in counties with oil, gas, or mining activity. Standard title policies exclude losses from mineral extraction or subsidence.

Specific endorsements can provide coverage if mineral rights are still owned with the surface, or they can affirm the status of severed mineral rights. Given Utah's mining history, particularly in counties like Carbon, Emery, and Uintah, these endorsements can be important for property owners.

Public Road Access in Rural Counties

Utah has thousands of miles of rural roads, and determining which roads are publicly maintained versus private can be complex. Access endorsements are particularly valuable in rural Utah counties where properties may have unclear access situations or where roads have unclear public/private status.

HOA and Covenant Endorsements

Utah has seen explosive growth in planned communities, particularly in the Wasatch Front, Washington County (St. George area), and Summit County (Park City area). PUD and condo endorsements are routine in these communities and protect against issues with HOA liens, assessment increases, and rights to use community amenities.

How Do I Request Title Insurance Endorsements?

Requesting endorsements is straightforward, but timing matters. Here's how to ensure you get the endorsements you need:

1. Review Lender Requirements Early

As soon as you have a loan commitment, review the lender's title insurance requirements. These will list required endorsements. Share this with your title company immediately so they can begin gathering necessary documentation.

2. Discuss Property-Specific Risks

Talk with your title company about your property and any concerns you have. Mention if you're worried about access, boundaries, zoning, environmental issues, or anything else. They can recommend appropriate endorsements.

3. Provide Necessary Documentation

Many endorsements require specific documents:

• Survey endorsements: Current ALTA survey from a licensed surveyor
• Zoning endorsements: Zoning letter or report from local planning department
• Environmental endorsements: May require Phase I environmental report for commercial properties
• Water rights endorsements: Documentation from Utah Division of Water Rights

Order these items early in your transaction to avoid delays at closing.

4. Review Your Title Commitment

Your title commitment will list proposed endorsements. Review this carefully to ensure all necessary endorsements are included and that requirements for each endorsement are acceptable and achievable.

5. Budget for Costs

Endorsements add to your closing costs. Make sure your cash-to-close calculations include estimated endorsement premiums. Your title company can provide exact costs once they know which endorsements you need.

6. Consider Future Needs

Think about what you might need later. Planning to build an addition? A survey endorsement now protects against setback issues. Thinking about running a business from home? A zoning endorsement confirms it's permitted. It's much easier to get these endorsements now than to try adding them later (which usually isn't possible).

What Happens If I Don't Get an Endorsement I Need?

Failing to obtain a necessary endorsement at closing can have serious consequences. Here are scenarios where missing endorsements created problems:

The Boundary Dispute Without Survey Coverage

A homeowner discovered their fence was five feet onto their neighbor's property. When the neighbor sued, the homeowner filed a claim with their title insurance company. However, their policy excluded losses arising from matters a survey would have revealed, and they didn't have a survey endorsement. The title company denied the claim, leaving the homeowner to pay legal fees and potentially relocate the fence at their own expense.

Lesson: If boundary issues are possible, get a survey and survey endorsement.

The Zoning Violation on a Home Business

An entrepreneur bought a property intending to run her consulting business from a home office. After closing, the city informed her the property was zoned residential-only and home businesses weren't permitted. She couldn't file a title insurance claim because zoning violations are excluded from standard policies. A zoning endorsement confirming home business use was permitted would have protected her, but she hadn't purchased one.

Lesson: If you're buying property for a specific use, get a zoning endorsement confirming that use is allowed.

The Access Problem on Rural Land

A buyer purchased rural Utah acreage, assuming a dirt road providing access was public. Years later, when trying to sell, a title search revealed the road was actually private, belonging to a neighboring ranch. The buyer had no recorded easement for access, making the property landlocked. Without an access endorsement, the title insurance didn't cover this problem.

Lesson: For rural properties, always verify access rights and consider an access endorsement.

Can Title Insurance Endorsements Be Added After Closing?

Generally, no. Here's why endorsements almost always must be obtained at closing:

The Underwriting Challenge

Title insurance endorsements require the title company to underwrite specific risks based on the condition of the property and title at closing. After closing, the title company has no way to verify those conditions still exist:

• A survey endorsement requires a current survey showing no encroachments. After closing, someone could have built an encroaching structure.
• A zoning endorsement requires confirmation of current zoning compliance. After closing, the owner might have made changes that violate zoning.
• An environmental endorsement requires verification that no environmental liens exist. After closing, new environmental issues could have arisen.

Because the title company can't verify these conditions after closing, they can't issue endorsements with confidence.

The Timing Problem

Title insurance insures against defects that existed at the policy date. Endorsements work the same way—they cover issues existing when the endorsement is issued. If you try to add an endorsement months or years after closing, there's no way to prove any claim relates to a problem that existed at closing rather than arising afterward.

Rare Exceptions

In very limited circumstances, an endorsement might be added post-closing:

• If the endorsement was inadvertently omitted despite meeting all requirements at closing
• If you can provide current documentation proving the condition at issue (like a recent survey) and the title company is willing to underwrite based on that
• If you're refinancing and getting a new lender's policy, you can obtain endorsements on that new policy

However, these exceptions are rare and at the title company's discretion. The bottom line: identify and obtain all endorsements you might need before closing. Once you leave the closing table, the opportunity is generally gone.

At Prospect Title, we work with clients to identify appropriate endorsements early in the transaction. Our experience with Utah real estate helps us recommend endorsements that provide meaningful protection for your specific property and situation. We explain what each endorsement covers, what it costs, and whether it's worth the premium. Explore our frequently asked questions or contact us to discuss your title insurance needs.