Guideline: ALTA Endorsement 34-06 (Identified Risk Coverage) 08-01-11


This endorsement allows an issuing office to provide certain specific coverages for a matter, referred to as the “Identified Risk”, that is excepted to in Schedule B of either an ALTA 2006 Owner’s or Loan Policy.

The endorsement insures against loss or damage sustained by reason of:

-A final order enforcing the Identified Risk in favor of an adverse party; or

-the release of a prospective purchaser or lessee or lender from the obligation to purchase, lease, or lend as a result of the Identified Risk, but only if:

--there is a contractual condition requiring the delivery of marketable title, and

--neither Stewart nor any other title insurance company is willing to insure over the Identified Risk with the same conditions as in the endorsement.

This endorsement does not obligate the Company to establish the Title free of the Identified Risk or to remove the Identified Risk.


Underwriting Requirements:

(1) The issuing office must insert in Paragraph #1 a description of the Identified Risk, such as title defect, restriction, encumbrance or other matter. 

(2) In addition, the issuing office must also insert the Schedule B Exception number or letter in Paragraph #1. 

 (3) Issuing offices must confirm that the Identified Risk is not a matter that may be considered an extrahazardous or special risk and not insure such risks without compliance with the appropriate underwriting guidelines and underwriter approval.  Please refer to Virtual Underwriter Section 5.36, Extrahazardous Risks, as well as other relevant VU sections and Company bulletins.

 (4) This endorsement may be modified only after written approval is obtained from appropriate underwriting personnel. 

The underwriting guidelines contained herein have been provided for general reference. The facts, circumstances, and location of the subject property should be considered when determining the issuance of the requested form or endorsement. Please note that all of the forms and endorsements included in this system may not be available in all states. Accordingly, please contact the appropriate Stewart Title Guaranty Company underwriting personnel in order to determine availability.

Compliance with the underwriting guidelines contained herein in no way obligates Stewart Title Guaranty Company to issue any form or endorsement.