167602E1 Coverage Determinatin Letter 304521 2¶

Claims Department

November 29, 2018 Ms. Sarah Zeeman

2740 Grove Street, NE

Brookhaven, GA 30319 VIA FEDERAL EXPRESS and E-MAIL: szeeman@gmail.com

RE:

Insured: Sarah Zeeman (the “Insured”) Property: 2740 Grove Street NE, Atlanta, GA (the “Property”)

STGC Policy No.: O-9892-140655 (the “Policy’’) STGC File No.: S023-0304521-18 Dear Ms. Zeeman:

This correspondence is Stewart Title Guaranty Company’s (hereinafter “STGC”) response | to your notice of claim dated October 8, 2018. STGC understands that your claim is a request for coverage under the Policy for losses and expenses associated with damage to the Property purportedly associated with the AT&T equipment located on the Property and a request for assistance in the removal of the AT&T easement from the Property.

Please be advised that the title insurance Policy is a contract of indemnification which provides coverage for certain specified losses and perils, subject to the terms, conditions, exclusions, and exceptions found in the policy.

Stewart has reviewed various documents while investigating this matter including but not limited to the following: I.

Notice of claim letter dated October 8, 2018;

2.

STGC Policy No.: O-9892-140655;

3.

Warranty Deed from John R. Thompson a/k/a John R. Thompson II to Sarah Zeeman dated May 30, 2006 and recorded on June 5, 2006 in Book 18783, Page

248 with the Clerk Superior Court, DeKalb County, GA (the “Vesting Deed”); Easement granted from John R. Thompson in favor of BellSouth Communications dated August 14, 2000 and recorded on August 15, 2000 in Book 11532, Page 26 with said Deeds (the “Easement”); Property Damage Estimate prepared by Chapman Services, LLC dated October 25,

2018; and

E-mail communications between you and STGC.

Stewart Title Guaranty Company 200 Fifth Ave, Suite 301

Waltham, MA 02451

(800) 628-2988 toll free

(781) 697-3333 main

(781) 697-3335 fax

Ms. Sarah Zeeman S023-0304521-18

Based on STGC’s investigation, our understanding of the facts of this claim are set forth below.

On or about August 14, 2000, prior owner John R. Thompson granted an

easement in favor of BellSouth Communications n/k/a AT&T Communications (hereinafter “AT&T”’) for a portion of the Property as evidenced by the Easement.

Sometime thereafter, pursuant to the Easement, AT&T constructed equipment on a portion of the Property.

On or about May 30, 2006, you obtained title to the property as evidenced by the Vesting Deed. In connection with this conveyance, the Policy was issued, insuring

title to the Property, subject to exclusions, exceptions, and conditions of the Policy. On October 8, 2018 you filed a claim with STGC claiming that the AT&T equipment located on the Property, as permitted by the easement, is causing a

blockage preventing water to flow naturally to a drain causing flooding, erosion and damage to your yard and fence. You requested that STGC provide assistance to you under the Policy to remove the AT&T equipment and reimburse you

$21,071.35 for repairs to your fence, drainage improvements, and landscaping.

The Policy generally provides coverage as follows:

This Policy insures You against actual loss, including any costs, attorneys' fees and expenses provided under this Policy, resulting from the Covered Risks set

forth below, if the Land is an improved residential lot on which there is located a one-to-four family residence and each insured named in Schedule A is a Natural Person.

Your insurance is effective on the Policy Date. This Policy covers Your actual loss from any risk described under Covered Risks if the event creating the risk exists on the Policy Date or, to the extent expressly stated in Covered Risks, after the Policy Date.

Your insurance 1s limited by all of the following: e

The Policy Amount shown in Schedule A

e

For Covered Risk 14, 15, 16 and 18, Your Deductible Amount and Our Maximum Dollar Limit of Liability shown in Schedule A

e

The Exceptions in Schedule B

e

Our Duty To Defend Against Legal Actions

Ms. Sarah Zeeman S023-0304521-18

e

The Exclusions on page 2

e

The Conditions on pages 2 and 3. COVERED RISKS

The Covered Risks are:

1. Someone else owns an interest in Your Title.
2. Someone else has rights affecting Your Title because of leases, contracts, or

options. 3. Someone else claims to have rights affecting Your Title because of forgery or impersonation. 4. Someone else has an Easement on the Land. 5. Someone else has a right to limit Your use of the Land. 6. Your Title is defective. 7. Any of Covered Risks 1 through 6 occurring after the Policy Date.

1. Someone else has a lien on Your Title, including a: a. lien of real estate taxes or assessments imposed on Your Title by a governmental authority that are due or payable, but unpaid;

b. Mortgage; c. judgment, state or federal tax lien; d. charge by a homeowner's or condominium association; or e. lien, occurring before or after the Policy Date, for labor and material furnished before the Policy Date. 9. Someone else has an encumbrance on Your Title. 10. Someone else claims to have rights affecting Your Title because of fraud,

duress, incompetency or incapacity. 11. You do not have actual vehicular and pedestrian access to and from the Land,

based upon a legal right.

Ms. Sarah Zeeman

S023-0304521-18

1. You are forced to correct or remove an existing violation of any covenant,

condition or restriction affecting the Land, even if the covenant, condition or restriction is excepted in Schedule B. However, You are not covered for any violation that relates to:

a. any obligation to perform maintenance or repair on the Land; or b. environmental protection of any kind, including hazardous or toxic conditions or substances

unless there is a notice recorded in the Public Records, describing any part of the Land, claiming a violation exists. Our liability for this Covered Risk is limited to the extent of the violation stated in that notice.

1. Your Title is lost or taken because of a violation of any covenant, condition or restriction, which occurred before You acquired Your Title, even if the covenant, condition or restriction is excepted in Schedule B.

2. The violation or enforcement of those portions of any law or government regulation concerning: a. building; b. zoning; c. land use;

d. improvements on the Land; e. land division; or f. environmental protection,

if there is a notice recorded in the Public Records, describing any part of the

Land, claiming a violation exists or declaring the intention to enforce the law or regulation. Our liability for this Covered Risk is limited to the extent of the violation or enforcement stated in that notice.

1. You are forced to remove or remedy Your existing structures, or any part of

them - other than boundary walls or fences - because any portion was built without obtaining a building permit from the proper government office. The amount of Your insurance for this Covered Risk is subject to Your Deductible Amount and Our Maximum Dollar Limit of Liability shown in Schedule A.

Ms. Sarah Zeeman

S023-0304521-18

1. You are forced to remove or remedy Your existing structures, or any part of

them, because they violate an existing zoning law or zoning regulation. If You are required to remedy any portion of Your existing structures, the amount of Your insurance for this Covered Risk is subject to Your Deductible Amount and Our Maximum Dollar Limit of Liability shown in Schedule A. 17. You cannot use the Land because use as a single-family residence violates an

existing zoning law or zoning regulation. 18. You are forced to remove Your existing structures because they encroach onto

Your neighbor's land. If the encroaching structures are boundary walls or fences, the amount of Your insurance for this Covered Risk is subject to Your Deductible Amount and Our Maximum Dollar Limit of Liability shown in Schedule A. 19. Someone else has a legal right to, and does, refuse to perform a contract to

purchase the Land, lease it or make a Mortgage loan on it because Your neighbor's existing structures encroach onto the Land.

1. You are forced to remove Your existing structures which encroach onto an Easement or over a building set-back line, even if the Easement or building set-

back line is excepted in Schedule B. 21. Your existing structures are damaged because of the exercise of a right to

maintain or use any Easement affecting the Land, even if the Easement is excepted in Schedule B. 22. Your existing improvements (or a replacement or modification made to them after the Policy Date), including lawns, shrubbery or trees, are damaged because

of the future exercise of a right to use the surface of the Land for the extraction or development of minerals, water or any other substance, even if those rights are excepted or reserved from the description of the Land or excepted in Schedule B. 23. Someone else tries to enforce a discriminatory covenant, condition or

restriction that they claim affects Your Title which is based upon race, color, religion, sex, handicap, familial status, or national origin. 24. A taxing authority assesses supplemental real estate taxes not previously

assessed against the Land for any period before the Policy Date because of construction or a change of ownership or use that occurred before the Policy Date. 25. Your neighbor builds any structures after the Policy Date -- other than

boundary walls or fences -- which encroach onto the Land.

Ms. Sarah Zeeman S023-0304521-18

1. Your Title is unmarketable, which allows someone else to refuse to perform a contract to purchase the Land, lease it or make a Mortgage loan on it.
2. Someone else owns an interest in Your Title because a court order invalidates

a prior transfer of the title under federal bankruptcy, state insolvency, or similar creditors' rights laws. 28. The residence with the address shown in Schedule A is not located on the Land at the Policy Date.

We would like to