Wary underwriters balk at high risk mechanic’s lien coverage

In the last few years, several states have worked to address the increasing incidence of mechanic’s lien claims and subsequent losses. The losses are often caused by the combination of ‘hidden liens’ in states that give the mechanic’s lien claimant priority from the first visible commencement of work on the property and the continued down economy. While some states have addressed this issue, industry members in North Carolina are still trying to come up with a solution.