Think of endorsements like add-ons to your home’s title insurance policy — just like those extras you might add to your car insurance (like roadside assistance or rental car coverage).
In the world of title insurance, endorsements are special forms that provide additional coverage beyond the basic policy. They can protect you from specific issues that might come up with the property — things like easements, access rights, or environmental liens.
The Problem? Overselling!
Here’s the thing:
- There are about 30-40 standard endorsements in most states — and some areas have even more.
- Some of them are important, but a lot of them aren’t necessary for every buyer or property.
Unfortunately, some title companies or agents oversell these extras. They’ll push you to add every endorsement under the sun — which can jack up your closing costs by hundreds of dollars for things you don’t actually need.
Why Should You Care?
Because everybody involved in your real estate transaction is earning a fee or commission based on what you buy. And endorsements? They’re a money-maker for title companies.
The good news? You don’t need to become an expert in endorsements overnight. But you do need to:
- Understand what you’re being asked to pay for
- Know what’s required (by your lender) and what’s optional
- Ask questions if you’re not sure why an endorsement is being included
What Are Some Common Endorsements?
Here are a few you might see — and what they cover:
- Survey Coverage (Survey Endorsement) – Protects against things that might show up in a survey, like encroachments or property line issues.
- Access Endorsement – Guarantees that you have legal access to a public road.
- Restrictions, Encroachments, and Minerals (ALTA 9.3) – Covers certain property restrictions and mineral rights.
- Condominium Endorsement (ALTA 4) – If you’re buying a condo, this protects against condo-specific issues.
- Planned Unit Development (PUD) Endorsement (ALTA 5) – Covers HOA issues and shared spaces in communities.
- Environmental Protection Lien Endorsement – Protects against liens for environmental clean-up costs.
Some of these are important depending on your property type. But others? They’re just fluff you might not need — so be careful!
What’s the Process?
- Your Lender Will Usually Require Some Endorsements
They have a list of what’s needed for your loan to be protected. That’s a good starting point! - Ask for a List of ALL Endorsements
Have the title company explain each one — what it covers, why you might need it, and whether it’s optional or required. - Be Smart and Shop Around
Don’t just say “yes” to every extra endorsement. And don’t let anyone pressure you into thinking you need more than you really do!
Strong Warnings
Don’t let a title rep or real estate agent push you into paying for things that sound impressive but aren’t actually necessary.
Remember — the lender’s policy only protects the lender. Make sure you’re getting what’s best for you, too!
These extras add up — so be vigilant and don’t be afraid to ask for explanations or say no to things you don’t need.
Final Tip: There’s an entire section on title insurance and escrow in the House Karma educational center. We strongly encourage you to read it before closing — it’ll help you feel confident and prepared when these endorsements come up.
Remember: You’re buying a home, not a stack of add-ons you might never use. Be careful, ask questions, and protect your wallet — you’ve got this!
