According to provisions in lien legislation, which group listed below is not entitled to liens on improvements?

According to provisions in lien legislation, which group listed below is not entitled to liens on improvements?

• A. insurers
• B. contractors
• C. owners
• D. engineers

Answer: (A)

Liens secure payment to those who actually contribute to a property improvement by supplying labor or materials that become part of the project. An insurer does not provide labor or materials for the improvement, nor does it create a security interest in the completed work, so it does not have a lien right. In contrast, contractors furnish the work and materials, engineers provide the design services that enable the project, and owners finance and authorize the improvement; these are the types of parties that commonly obtain lien rights under lien legislation.

Liens secure payment to those who actually contribute to a property improvement by supplying labor or materials that become part of the project. An insurer does not provide labor or materials for the improvement, nor does it create a security interest in the completed work, so it does not have a lien right. In contrast, contractors furnish the work and materials, engineers provide the design services that enable the project, and owners finance and authorize the improvement; these are the types of parties that commonly obtain lien rights under lien legislation.