Page 99 - ALTA Endorsements Guide

A L T A E N D O R S E M E N T

1-06 to 9.6.1-06 9.7-06 to 17.1-06 17.2-06 to 28.3-06 29-06 to 36.6-06 36.7-06 to 46-06

ALTA ENDORSEMENT 31-06

SEVERABLE IMPROVMENTS

Adopted (2-3-11)

1. As used in this endorsement, "Severable Improvement" means property affixed to the Land on or
after Date of Policy that by law does not constitute real property because:

a. of its character and manner of attachment to the Land; and

b. it can be severed from the Land without causing material damage to it or to the Land.

2. In the event of a loss by reason of a defect, lien, encumbrance, or other matter covered by this Policy
(“Defect”), the calculation of the loss shall include (but not to the extent that these items of loss are
included in the valuation of the Title determined pursuant to Section 8 of the Conditions or any other
endorsement to the Policy):

a. the diminution in value of the Insured’s interest in any Severable Improvement resulting from
the Defect, reduced by the salvage value of the Severable Improvement; and

b. the reasonable cost actually incurred by the Insured in connection with the removal or
relocation of the Severable Improvement resulting from the Defect and the cost of
transportation of that Severable Improvement for the initial one hundred miles incurred in
connection with the relocation.

3. This endorsement relates solely to the calculation of the Insured’s loss resulting from a claim based
on a defect, lien, encumbrance or other matter otherwise insured against by the Policy. This Policy
does not insure against loss or damage (and the Company will not pay any costs, attorneys’ fees or
expenses) relating to:

a. the attachment, perfection or priority of any security interest in the Severable Improvement;

b. the vesting or ownership of title to or rights in any Severable Improvement;

c. any defect in or lien or encumbrance on the title to any Severable Improvement; or

d. the determination of whether any specific property is real or personal in nature.

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.

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