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Identified Risk Endorsements
Sometimes an exception can't come out, but the insurer is comfortable insuring a specific outcome. That's what ALTA 34 is for.
DISCLAIMER: For informational and educational purposes only. Nothing here is legal advice, a title opinion, or a commitment to insure, and no attorney-client relationship is created. No one may rely on this content for any transaction or legal decision. Coverage is governed solely by the terms of an issued policy or commitment, and requirements vary by state and underwriter. Consult your own attorney and underwriter. Views are my own and not those of my employer.
The minute version
What ALTA 34 does
- ALTA 34 (Identified Risk Coverage): for a specifically defined "Identified Risk" from an excepted matter, it insures against a final court order enforcing it, or a buyer, tenant or lender being released from a marketable-title contract because of it when no insurer will insure over it. Available on owner's and loan policies.
- ALTA 34.1 names the Identified Exception and the specific consequences insured.
- The exception stays in Schedule B. The endorsement gives back coverage for a defined consequence, such as forced removal of a building because of an old easement.
Why it's useful
- It's a standard ALTA form, so the parties work from published language instead of custom wording.
- It fits deals where the insurer won't delete an exception but will give limited coverage for the specific matter.
How to ask for it
- Identify the exception, describe the specific consequence you're worried about, and give the insurer the facts: the document, the survey, any estoppels or releases.
- Expect the insurer to define the risk narrowly. Read the defined terms carefully.
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