Learn · Endorsement deep dive
Zoning Endorsements
Zoning is excluded from the base policy. The ALTA 3 series puts a defined slice of it back.
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The minute version
Why zoning needs an endorsement
- Exclusion 1 removes land-use laws, and Covered Risk 5 only reaches violations described in a recorded Enforcement Notice. The ALTA 3 series gives defined zoning coverage back.
The forms
- ALTA 3 (Zoning): the land is in the stated zoning classification and the listed uses are allowed. It can be issued on vacant or improved land.
- ALTA 3.1 (Completed Structure): ALTA 3 plus loss from a final court order prohibiting use or requiring removal or modification of an existing structure for violating listed rules: lot area, width or depth, floor area, setbacks, height, or number of parking spaces.
- ALTA 3.2 (Land Under Development): extends 3.1-type physical coverage to improvements to be built under identified plans.
- ALTA 3.3 (Non-Conforming Use): covers a grandfathered non-conforming use.
- ALTA 3.4 (No Zoning Classification): for improved land where there's no zoning ordinance or no classification. Covers loss if the stated use isn't allowed under a county or municipal zoning ordinance, plus court-ordered removal for listed physical violations.
What it doesn't do
- Zoning endorsements insure classification and listed physical compliance. They are not a building-code, permit or certificate-of-occupancy guarantee.
- The insurer usually wants a zoning report or letter, and often survey items for dimensions, setbacks and parking.
Topic quiz
8 questions on Zoning Endorsements
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