RealTown Words

1. A term used widely in fire insurance policies to denote that the policies cover damage by wind, hail, explosion, riot, smoke, and other perils.

2. A title insurance policy that covers risks normally excluded by most standard-coverage policies. The standard policy normally insures the title only as shown by the public records. It does not cover unrecorded matters that might be discovered by an inspection of the premises. Most lenders require extended-coverage mortgage title insurance policies. Extended coverage indemnifies the insured against such things as mechanics’ liens, tax liens, miscellaneous liens, encumbrances, easements, rights of parties in possession, and encroachments, which may not be disclosed by the public records.