NM Leasehold Owner's Endorsement Guideline 20

Explanation:

The Leasehold Owner's Endorsement (NM 20, ALTA 13) may be attached to an Owner's Policy (NM 1) to convert the standard NM Owner's Policy into a Leasehold Owner's Policy.

Underwriting Requirements:

We require the following:

1. A Leasehold Owner's Endorsement (NM 20) shall be attached to a standard Owner's Policy (NM 1) insuring a leasehold interest.

2. Leasehold Owner's Policies shall be issued to insure a leasehold owner's estate and in the amount, at the option of the Insured, of either (1) the total amount of the rentals payable under the lease contract, or (2) of the land and any existing improvements, or (3) the value of the land and any existing improvements and the cost of the improvements immediately contemplated to be erected thereupon.  In the latter case, the leasehold owner's policy must contain a Pending Improvement clause or Pending Improvements Endorsement (NM 23).

3. Unless otherwise specifically stated, a Leasehold Owner's Policy shall contain the same standard exceptions, be subject to the same premium rates and be subject to deletion of the same standard exceptions in the same manner as a standard Owner's Policy.

4. A Leasehold Owner's Policy may be converted back to a standard Owner's Policy by the issuance of an Owner's Leasehold Conversion Endorsement (NM 31).

5. No additional premium shall be charged for the Leasehold Owner's Endorsement.