Bill > HB1187

This bill creates a new legal mechanism for cities and counties in North Dakota to place a lien on fire insurance proceeds when a property is deemed a total loss. The lien is designed to help cover the costs of debris removal and property remediation. The lien amount can be either $5,000 or 10% of the policy limits for real property loss, but cannot exceed the total policy limits for property loss and debris removal. The insurance company must send a certified letter to the property owner and local auditor within ten days of determining a total loss, providing details about the claim and coverage. To perfect the lien, the city or county must file a notice with the county recorder within 30 days of receiving the letter. The notice must include estimated remediation costs and follow specific formatting requirements. The lien can be released if the property is satisfactorily remediated, repair measures are established, or the insurance company pays the lien amount. If the actual remediation costs are less than the lien amount, the difference must be returned to the insurer. The bill also provides a mechanism for the insurance company or policyholder to seek a lien release through court action if the local auditor refuses to do so, with the prevailing party entitled to recover costs and attorney's fees.

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https://ndlegis.gov/assembly/69-2025/regular/bill-overview/bo1187.html