What are provisions added to title insurance policies that offer additional coverage called?

• A. Clauses
• B. Endorsements
• C. Addendums
• D. Exceptions

Answer: (B)

The correct term for provisions added to title insurance policies that provide additional coverage is endorsements. Endorsements enhance the basic coverage of a title insurance policy by adding specific protections against losses that may arise from particular situations not included in the standard policy. These additions can cover various risks, such as zoning issues, survey discrepancies, or even specific liens, depending on the needs of the insured.

Endorsements are crucial because they offer tailored protection based on unique circumstances or needs associated with a property. By including endorsements, a property owner can ensure comprehensive protection against particular risks they may face.

While clauses could refer to specific components or sections within legal documents, they do not specifically connote additional coverage. Addendums are typically used to modify or add information to existing contracts rather than provide insurance coverage. Exceptions are conditions or situations that are specifically excluded from the policy coverage, which is contrary to the purpose of endorsements. Thus, endorsements stand out as the type of provision that adds beneficial coverage to title insurance policies.