What is loss of priority, also known as broken priority?
In any situation where there is evidence that priority may have been broken (i.e. there is any evidence of commencement of construction or delivery of materials prior to the recording of the deed of trust/mortgage) the Underwriter’s regional office must be contacted if the mechanic lien coverage is desired by the proposed insured. Deletion of the mechanic lien exception in a standard Loan Policy is not typically offered in such circumstances. If the coverage is to be granted, the Underwriter must be provided sufficient reliable evidence so that an appropriate underwriting determination may be undertaken and an additional premium may be charged.
