NY TIRSA Market Value Policy Rider for ALTA Owner’s Policy Guideline 1993
Explanation:Purpose Of Endorsement:
The endorsement provides coverage for the market value, at the time of loss, of the land and improvements made to the property prior to the policy date. This rider also contains an arbitration provisions which is unaffected by the TIRSA WAIVER OF ARBITRATION ENDORSEMENT (9/1/93). The endorsement is not effective to cover the value of later improvements.
Underwriting Requirements:Requirements For Issuance:
(a) This endorsement is required by law to be offered to purchasers of owner-occupied, primarily residential real property with a maximum of four (4) dwelling units. Subdivision (c) of Insurance Law §6409 provides:
(c) Notwithstanding any other provision of this article, every title insurance company shall be required to offer, at or prior to title closing, an optional policy form which will insure the title of owner-occupied real property used predominantly for residential purposes which consists of not more than four dwelling units for an amount equal to the market value of the property at the time a loss is discovered. Such policy form shall be filed with the superintendent pursuant to subsection (a) of this section. Rates for such coverage shall be filed pursuant to subsection (b) of this section.
(b) When insuring the purchase of a residential 1-4 family dwelling (including properties which may include offices or storefronts, as long as the property is primarily residential) which will be owner occupied, you must obtain proof that the Market Value Rider was offered. This is done by providing a notice to the purchaser (which is usually incorporated into the preliminary certificate of title as an exception in Schedule B). If the purchaser declines to purchase the additional coverage, a copy of the offer is to be signed by the purchaser acknowledging that the offer took place, and waiving the coverage offered;
(c) Note that this offer is in addition to the Notice of Availability required by Rate Manual Part 1, Section 26, which is to be given to a purchaser of a 1-4 family residential property, when a mortgage policy is to be issued and an owner’s policy has not been ordered;
(d) This endorsement is not to be issued to a purchaser at a foreclosure sale where the bid is below market value, unless the amount of insurance purchased is approximately equal to the current market value of the property.
Issued With The Following Policies:
This rider is for owner’s policies only.
10% of the unreduced (straight) fee premium.
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):None