Can a restoration company put a lien on my house if my insurance is paying in full?
When unpaid for construction work, restoration companies will generally have lien rights just like any other construction company might. This is true even when someone other than the property owner – like an insurer – is the one responsible for actually making payment.
Certainly, this can create a tough situation for a property owner. The owner is essentially stuck – the insurance company is supposed to make payment, but because they’re falling behind, the contractor gets impatient and doesn’t have a choice but to move forward with a lien due to the nature of mechanics lien deadlines and the construction industry as a whole.
It can help to assure an unpaid contractor that payment is ultimately coming, and it can help to continuously put pressure on the insurer so that they’re aware of the seriousness of the situation and the repercussions of failing to make payment. But, ultimately, the answer is generally yes – a contractor may be able to pursue a mechanics lien claim, even when the owner’s insurance company is the one who’s failed to make payment.
Here are some other resources I think should be valuable here:
(1) I Just Received a Notice of Intent to Lien – What Should I Do Now?
(2) A Mechanics Lien Was Filed on My Property – What Do I Do Now?
(3) Maryland Mechanics Lien Guide and FAQs