IL Homeowner's Inflation Endorsement 1 (Residential Only)



ENDORSEMENT

Attached to Policy No. __________

Issued by

STEWART TITLE GUARANTY COMPANY

The Company, recognizing the current effect of inflation on real property valuation and intending to provide additional monetary protection of the insured owner named in this policy, hereby modifies this policy as follows:

1.    Notwithstanding anything contained in the policy to the contrary, the amount of insurance provided by the policy, stated in Schedule A thereof, is subject to cumulative annual upward adjustments in the manner and to the extent hereinafter specified;

 

2.    The policy amount then in force will increase by ten percent (10%) of the policy amount shown in Schedule A each year the first five years following the policy date shown in Schedule A, up to one hundred fifty percent (150%) of the policy amount shown in Schedule A, less the amount of any claim paid under said policy which, under the terms of the conditions, reduces the amount of insurance in force, such annual increases shall occur on the anniversary of the policy date shown in Schedule A.

 

3.    In the settlement of any claim against the company under said policy, the amount of insurance in force shall be deemed to be the amount which is in force as of the date on which the insured claimant first learned of the assertion or possible assertion of such claim, or as of the date of receipt by the company of the first notice of such claim, whichever shall first occur, provided, however, this endorsement shall be effective only if one of the following conditions exists at the date of policy:

 

a.     The land described in this policy is a parcel on which there is located only a one-to-four family residential structure (including any improvements on the land related to such residential use) in which the insured owner resides or intends to reside; or,

 

b.    The land consists of a residential condominium unit, together with the common elements appurtenant thereto and related to residential use thereof, in which insured owner resides or intends to reside.

This endorsement is issued as part of the policy and is subject to all of the terms and provisions thereof and of any prior endorsements thereto. Except as it expressly states, it does not (i) modify any of the terms and provisions of the policy, (ii) modify any prior endorsements, (iii) extend the Date of Policy, or (iv) increase the Amount of Insurance. To the extent a provision of the policy or a previous endorsement is inconsistent with an express provision of this endorsement, this endorsement controls. Otherwise, this endorsement is subject to all of the terms and provisions of the policy and of any prior endorsements.

 

 STEWART TITLE GUARANTY COMPANY

For issuing guidelines on this form, see Guidelines