STG Subsequent Appreciation/Inflation Coverage Endorsement Guideline 2
Explanation:This endorsement is typically requested on an Owner's Policy. The endorsement provides for increase in the amount of insurance by reason of inflation, with the increase not to exceed 50% of the scheduled amount of insurance. Sometimes the endorsement provides for automatic increases of 10% per year, but, generally, the increase is tied to a consumer price index.
Underwriting Requirements:(1) Reinsurance will be necessary if the amount of the Policy exceeds $26,666,666.00 since the extra coverage afforded by the inflation endorsement must also be reinsured or considered part of the amount of the risk.
(2) Senior Underwriter approval is required for issuance of the endorsement.
The underwriting guidelines contained herein have been provided for general reference. The facts, circumstances, and location of the subject property should be considered when determining the issuance of the requested form or endorsement. Please note that all of the forms and endorsements included in this system may not be available in all states. Accordingly, please contact the appropriate Stewart Title Guaranty Company underwriting personnel in order to determine availability.
Compliance with the underwriting guidelines contained herein in no way obligates Stewart Title Guaranty Company to issue any form or endorsement.
This guideline applies to the following form(s):