An ALTA extended coverage loan policy differs from the standard coverage policy by offering

• A. insurance against matters not of public record.
• B. a smaller deductible.
• C. fire insurance.
• D. flood insurance.

Answer: (A)

The main concept here is what extended coverage adds to a lender’s ALTA title insurance policy. An ALTA extended coverage loan policy expands protection beyond the standard policy by insuring against risks that are not reflected in public records. These off‑record matters could affect title and are not revealed by a typical title search, such as unrecorded liens, unrecorded easements or encroachments, or other hidden defects that could later impact the lender’s security.

In contrast, fire and flood insurance are separate types of coverage (not title insurance) and a policy typically does not attach a deductible in the way other policies might. The standard title policy already covers matters that appear in public records or are discovered through a normal search, so it does not cover off‑record risks unless the extended coverage is added. That’s why the option describing protection against matters not of public record is the best answer.