Explanation:
This endorsement insures against loss if
specific utility lines don't: (a) enter the insured premises, and (b) service
the insured premises. It relies upon confirmation of several off-record
matters.
Underwriting Requirements:
1.
The endorsement contains a list of possible utility lines, some of which may not
be available to the subject property. Ascertain from the customer the
specific utilities that are of concern. Use that as the basis for your
inquiry.
2. Each of the requested
utility lines must be analyzed separately, as follows:
(A) Confirm that the specified utility
line actually enters the property. Review the survey and locate and
identify the specified utility line. As a reminder, the existence of a
utility easement (recorded, platted and/or shown on the survey) is not
evidence that a utility line actually runs through the easement
area. Failure to show a particular utility line on the survey is a
potential indicator that the utility service doesn't exist. For example, a
sanitary sewer line may not exist because there may be a septic system
instead. Similarly, storm water drainage may be handled by drainage
ponds. Consult with the surveyor to resolve ambiguities.
(B) Confirm that the specified utility
line actually services the premises. Although a utility line may
exist, it may not service the subject property. For example, a electrical
power line may cross a property, but not actually deliver electricity to the
buildings there. If the survey shows a utility line connecting to a
building, you may assume that the line services the premises. However, if
you are unable to make a determination based solely upon the survey, you should
obtain independent confirmation that the utility line services the subject
premises, for example, by:
i. Surveyor's written
confirmation (on survey or by separate letter);
ii. Letter from utility
company;
iii. Letter from
municipal/county authority;
iv. Letter from engineer;
v. Affidavit from current
owner (which may be incorporated into the title affidavit) together with
independent evidence (e.g., water/sewer bill); or
vi. Municipal water/sewer
search.
(C) If you can confirm that a utility
line services the property, but the survey doesn't disclose it, consider
deleting the bracketed text "[all as shown on the Survey,]".
3. This endorsement can be
given for existing improvements or recently-completed construction. It is
less likely - but possible - that the requirements can be met for vacant land,
since the utility lines may not exist yet. In such event, consider
offering the endorsement upon completion of the construction and satisfaction of
the underwriting requirements for issuing the endorsement.