STG Subsequent Appreciation/Inflation Coverage Endorsement 2

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STG Subsequent Appreciation/Inflation Coverage Endorsement 2

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V 1

This form should not be used if a comparable ALTA version is available. If a comparable ALTA version is available, the most current version of the ALTA form available in each state should be used, unless approved by a Stewart underwriter.





The Company, recognizing the effect of subsequent appreciation on the adequacy of Policy coverage limits and intending to provide additional monetary protection to the insured in said Policy, hereby modifies the Amount of Insurance in Schedule A and the provisions regarding the Amount of Insurance in paragraphs 2(a)(i) and 6(a)(ii) of the Conditions and Stipulations of said Policy:


  1. The Amount of Insurance provided by said Policy, as stated in Schedule A thereof (hereinafter the "Scheduled Amount"), is subject to cumulative annual upward adjustments in the manner and to the extent hereinafter specified.

  2. "Adjustment Date" is defined to be 12:01 a.m. Eastern Time on the first January 1 which occurs after Date of Policy, shown in Schedule A of the Policy and on each succeeding January 1.

  3. An upward adjustment will be made on each of the Adjustment Dates by increasing the Amount of Insurance by the same percentage, if any, by which the fair market value of the land as of the Adjustment Date exceeds, in the case of the first Adjustment Date hereunder, the fair market value of the land as of the Date of Policy, or in the case of subsequent adjustment, the fair market value of the land as of the previous Adjustment Date; provided, however, that notwithstanding the foregoing: (i) the maximum Amount of Insurance in force shall not be increased as of any Adjustment Date by an amount which exceeds 10% of the Scheduled Amount, (ii) the maximum Amount of Insurance in Force shall never exceed 150% of the Scheduled Amount, less the amount of any claim paid under said Policy which, under the terms of the Conditions and Stipulations, reduces the Amount of Insurance in Force, and (iii) no adjustment shall result in a decrease in the Scheduled Amount in force. There shall be no annual adjustment in the Amount of Insurance for years in which there is no percentage increase in said fair market value.

  4. 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.

This Endorsement does not insure amount of the fair market value of the land, nor that said land shall appreciate in value.

This Endorsement is made a part of said Policy and is subject to the Exclusions from Coverage, Schedules, Conditions and Stipulations therein, except as modified by the provisions hereof. Nothing herein contained shall be construed as extending or changing the Effective Date of said Policy or as limiting the provisions of paragraphs 2(a)(ii) and (iii), 6(a)(i) and (iii), 8, and 9 of the Conditions and Stipulations.

Signed under seal of the Company, but this Endorsement is to be valid only when it bears an authorized countersignature, this the ___ day of ___________ , 20 ___ .

This endorsement is issued as part of the policy. 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.

Copyright 1970-2022 Stewart Title Guaranty Company. All rights reserved. The use of this form (or any derivative thereof) is restricted to Stewart Title Guaranty Company, it’s issuing agents, and affiliates in good standing as of the date of use. All other uses are prohibited.

For issuing guidelines on this form, see Guidelines.