Robert Chen purchased a property in Rochester, NY, and obtained an owner's title insurance policy. Two years later, a neighbor successfully proves in court that a portion of Robert's driveway encroaches on their property and must be removed. The removal and reconstruction costs $15,000. How will Robert's title insurance policy respond to this claim?
Correct Answer
D) The policy will cover the loss only if the encroachment was not visible during a property inspection
Standard title insurance policies in New York typically exclude coverage for encroachments that would be revealed by an accurate survey or physical inspection of the property. However, if the encroachment was not discoverable through such inspection, it may be covered.
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