Which coverage extends protection beyond standard coverage by adding protections against additional defects?

• A. Encroachments
• B. Standard coverage
• C. Mortgagors/borrow's policy
• D. Extended coverage

Answer: (D)

Extended coverage goes beyond the basics by adding protection for risks that a standard title search might miss. Standard coverage protects against defects, liens, and encumbrances that are found in public records and discovered through examination of the title. Extended coverage broadens that protection to include additional issues that may not be revealed by a routine records search or survey, such as unrecorded encumbrances, certain survey matters, and other off-record risks like encroachments, boundary line disputes, or rights of parties in possession. So, it’s the expansion of protection that captures these extra defects and problems, not the baseline coverage or a borrower-focused policy. Encroachments are an example of the kinds of risks extended coverage can address, but they aren’t the name of the coverage itself. The mortgagors/borrower’s policy describes who is insured, not how much risk protection is provided.