California Real Estate Practice Exam 2026 - Free Real Estate Practice Questions and Study Guide

The ALTA extended coverage policy provides an additional layer of protection on top of a standard title insurance policy. It covers a wide range of potential risks and issues related to the property, such as unrecorded liens, encroachments, and lack of legal access. However, it does not protect against zoning changes. This means that if a zoning change affects the property and causes a decrease in its value, the policy will not cover it. The other options listed, such as fraud, forgery, and encroachments, are all risks that are covered by the ALTA extended coverage policy.