Final answer:
The ALTA extended coverage policy offers protections for property titles against various risks but does not cover issues caused by the property owner's actions or environmental hazards.
Step-by-step explanation:
The ALTA extended coverage policy is designed to protect real estate owners and lenders against potential losses related to the title of a property. Such policies usually cover numerous risks, including but not limited to zoning issues, unrecorded liens, access rights, and certain types of encroachments. It is important to understand that while this policy provides extended coverage, it does not cover everything. Typically, issues resulting from the property owner's actions, lender errors, or certain environmental hazards like soil contamination may not be covered under such a policy.