Escrow & Title
A title company's extended coverage (ALTA) policy differs from a standard policy in that it:
ACovers only recorded encumbrances
BCovers additional risks such as survey matters, easements not shown in the public record, and encroachments✓ Correct
CIs available only to lenders
DProvides lower coverage limits
Explanation
An ALTA extended coverage policy insures against additional risks beyond recorded encumbrances, including matters that a survey or physical inspection would reveal (encroachments, easements, rights of parties in possession), which are typically excluded from standard policies.
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