Escrow & Title
In South Dakota, a title insurance policy with an endorsement for 'mechanics lien protection' protects the insured from:
AClaims by contractors who worked after the policy effective date
BClaims by contractors who claim they were not paid for work done before the policy effective date✓ Correct
CAll future construction defects
DGovernment special assessment liens
Explanation
Mechanics lien endorsements protect title insurance policyholders from previously unpaid contractor claims that arise (are filed) after the policy date but relate to work done before the policy was issued.
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