Guideline: STG High Liability (Over $30 Million) Mechanic's Lien Coverage Approval Request 1

Explanation:

Underwriting approval from a Stewart Title Guaranty Company underwriter is always required in order to provide mechanic's lien coverage on a construction loan mortgage. If the Amount of Insurance exceeds $30,000,000.00, approval by the Senior Underwriting Committee is required.  STG High Liability (Over $30 Million) Mechanic's Lien Coverage Approval Request is the form required to be used for requests for mechanic lien coverage in connection with high liability transactions.

Underwriting Requirements:

1.   STG High Liability (Over $30 Million) Mechanic's Lien Coverage Approval Request must be submitted where there is a request for mechanic's lien coverage on a construction loan mortgage if the Amount of Insurance exceeds $30,000,000. The form may be submitted, and may be required, for requests for mechanic’s lien coverage on a construction loan mortgage in a lesser Amount of Insurance.

2.   This form may be prepared by anyone familiar with the project. An underwriter must confirm that the questions are completed. 

3.   Please refer to the applicable bulletin for your state for guidance regarding insuring mechanic’s liens during construction. Please also refer to STG Mechanic’s Liens Documentation

4.   Approval of mechanic’s lien coverage, if provided, relates only to the mechanic’s lien coverage as proposed. Approval of mechanic’s lien coverage is not Overlimits approval of the transaction and other coverage or reinsurance approval. Overlimits approval must be separately requested and obtained by submission of an STG Request for Approval to Issue Overlimits (Large) Policy or Extra Hazardous Coverage. Reinsurance approval must also be separately requested and obtained.

5.   Approval of mechanic’s lien coverage is based upon the information that is supplied with the Request. If there are additional material facts or any substantive change of circumstances between the date of approval and the date of closing, issuing offices must request and obtain supplemental written approval.

6.   STG High Liability (Over $30 Million) Mechanic's Lien Coverage Approval Request is revised from time to time.  The form is available in the STG Forms Section on Virtual Underwriter.  The last revision date of the form appears at the bottom of the form posted in Virtual Underwriter.  Please ensure that your system is updated promptly with the most current versions of the form, or please return to Virtual Underwriter each time to utilize the most current version of the form for each Request.

The underwriting guidelines contained herein have been provided for general reference. The facts, circumstances, and location of the subject property should be considered when determining the issuance of the requested form or endorsement. Please note that all of the forms and endorsements included in this system may not be available in all states. Accordingly, please contact the appropriate Stewart Title Guaranty Company underwriting personnel in order to determine availability.

Compliance with the underwriting guidelines contained herein in no way obligates Stewart Title Guaranty Company to issue any form or endorsement.