All easements, which encumber the insured premises, must be listed on Schedule B of the policy. There are numerous types of easements which might affect the property, including rights of way of others over a portion of the premises, sewer line easements in favor of a town or city, wire and pole easements in favor of an electric or telephone company, pipeline easements, view easements, tc.

In listing an easement as an exception on Schedule B, it is not necessary to describe the easement in detail. You need only refer to the instrument creating the easement as follows:

Utility easement in favor of __________________________________ as set forth in an instrument dated _______________ and recorded with the _____________________ County Registry of Deeds in Book _______, Page _______.

If an easement only appears on a plan, and is not otherwise created by a recorded instrument, an exception for the easement must be taken by referring to the plan on which it appears. For example: Affirmative Insurance

Easement shown on a plan entitled," ______________________________", prepared by______________, dated _________, and recorded with the ______________County Registry of Deeds in Book ______, Page ______.

In most, cases lenders want affirmative insurance that any easements do not adversely affect the premises. The Secondary Mortgage Market Endorsement provides in part as follows:

Easements, if any, set forth in Schedule B, Part I, do not adversely affect the use and enjoyment of the premises for residential purposes as presently improved.

Before you attach a secondary mortgage market endorsement to a policy, you must make sure that this statement is indeed true by reviewing all easements and their location closely. If a structure is built on an easement area, contact the local office for instructions.