What is included in the covered risks of a leasehold endorsement?

The covered risks of a leasehold endorsement specifically include the risks associated with the rights and interests of a tenant or lessee under a lease agreement. This endorsement protects the lessee against various potential issues that might threaten their leasehold interest.

By encompassing both the owner's policy risks and the loan policy risks, the leasehold endorsement provides comprehensive coverage. Additionally, it includes protection against eviction costs, which are critical for tenants. If a tenant were to be wrongfully evicted, the endorsement helps to cover the financial consequences associated with this event, ensuring that the tenant's interests are safeguarded.

The inclusion of eviction costs, alongside the broader protections from the owner's and loan policy, makes this option the most comprehensive and relevant in addressing the unique risks associated with leasehold interests. This understanding is vital for anyone involved in title insurance, as it highlights the specific protections available to tenants in a leasehold situation.