STG Encroachment Endorsement Guideline 4

Explanation:

Various types of endorsements are requested where there are existing encroachments: insurance against removal of an encroachment over a boundary line; insurance against removal of an encroachment over a building or setback line; insurance against removal of an encroachment over an easement; insurance against loss by reason of use or maintenance of an easement; insurance against loss by reason of an easement; and insurance against loss by reason of interference of the easement with improvements.

Underwriting Requirements:

(1) In order to insure against forced removal of existing improvements on an easement, consideration should be made of the width of the easement and extent of encroachment, the period of time that the encroachment has existed, and whether the easement is being used.
(2) In order to insure against loss by reason of use or maintenance of an easement, you must be reasonably satisfied that the easement is not being used at this time nor is there any likelihood of use in the future.
(3) In order to insure against other encroachments over building or setback lines or easements, similar analysis should be made as to the period of time of use and extent of the encroachment. The building line must be a private (not governmental) building or setback line.
(4) Do not insure against loss by reason of any encroachment over a property line without underwriter approval (consideration will be made of consent to encroach, time of encroachment, and materiality of encroachment).
(5) Do not insure against loss by reason of an encroachment unless marketability is excluded.
(6) Do not insure against loss by reason of interference of the easement with the use of the improvements unless (a) the improvements do not significantly encroach over the easement, (b) the easement does not cross any access way to the improvements, and (c) the easement is not an above the ground easement such as power line easement.