What is the significance of having an "elevated risk" in title insurance?

Having an "elevated risk" in title insurance is significant because it often results in higher premiums or additional requirements for obtaining coverage. In the context of title insurance, elevated risks may stem from factors such as complex ownership histories, outstanding liens, or unclear property boundaries. When these risks are present, insurers may adjust their premium rates to account for the increased likelihood of a claim arising from these issues.

Additionally, underwriters may impose extra requirements for the insurance to be issued. This might include needing to clear certain encumbrances, obtaining additional documentation, or implementing specific risk mitigation measures. Therefore, the presence of elevated risks inherently influences the terms and conditions of the insurance policy, making it essential for both the insurer and the insured to address these challenges upfront.