It is the policy of our company to provide affirmative coverage under lender’s title policies when minor encroachments are present. Minor encroachments are defined as encroachments of improvements over minimum building setback lines (less than a few inches) or similar encroachment of improvements onto easements. Encroachments of fences and gravel drives onto easement or over boundary lines may be insured if they are less than 3 feet. Gross encroachments of improvements (more than a few inches over the minimum building setback line requirements or onto easements by concrete retaining walls, etc.) should be treated on a case-by-case basis. Please contact the underwriting department for affirmative coverage involving the more severe encroachment problems.
When warranted by the above criteria, the following affirmative coverage may be afforded:
[Describe the encroachment under Schedule B of the commitment or policy, and then add the following:] “However, this policy affirmatively insures the insured against loss as a result of the enforcement of a decree of a final judgment from a court of competent jurisdiction ordering the removal of said encroachment.”
Similar coverage can be provided by an endorsement which includes substantially the same language and refers to a specific Schedule B exception.