Fidelity stops mechanics’ lien coverage in North Carolina

Fidelity wrote a note to its approved attorneys that it will be curtailing mechanic’s and materialmen’s lien coverage in the state of North Carolina for properties with recent construction or construction loans because of the risks that these pose to their business and insureds in that state. Curtailing such coverage, especially if other underwriters follow suit, could dramatically affect business in North Carolina until legislative action changes things. Read on for more information.