N.Y. Lien Law Section 4-A
Insurance proceeds liable for demands

Owner, contractor or subcontractor diverting proceeds, guilty of larceny. The proceeds of any insurance which by the terms of the policy are payable to the owner of real property improved, and actually received or to be received by him because of the destruction or removal by fire or other casualty of an improvement on which lienors have performed labor or services or for which they have furnished materials, shall after the owner has been reimbursed therefrom for premiums paid by him, if any, for such insurance, be subject to liens provided by this act to the same extent and in the same order of priority as the real property would have been had such improvement not been so destroyed or removed. The proceeds of any insurance which by the terms of the policy are payable to a contractor or subcontractor, and actually received or to be received by him because of the destruction or removal by fire or other casualty of an improvement on which he has performed labor or services or for which he has furnished materials, shall, after such contractor or subcontractor has been reimbursed therefrom for premiums paid by him, if any, for such insurance, be liable for the payment of demands for labor or services performed or materials furnished by his order and for which he is liable, in the same manner and under the same conditions as payments to him under his contract would have been had such improvement not been so destroyed or removed.

Source: Section 4-A — Insurance proceeds liable for demands, https://www.­nysenate.­gov/legislation/laws/LIE/4-A (updated Sep. 22, 2014; accessed Feb. 14, 2026).

3
Mechanic’s lien on real property 4
Extent of lien 4–A
Insurance proceeds liable for demands 5
Liens under contracts for public improvements 6
Liens for labor on railroads 7
Liability for advance payments, collusive mortgages and incumbrances 8
Terms of contract may be demanded 9
Contents of notice of lien 10
Filing of notice of lien 11
Service of copy of notice of lien 11–A
Notice of completion and acceptance may be demanded 11–B
Copy of notice of lien to a contractor or subcontractor 11–C
Copy of notice of lien to a contractor or subcontractor with respect to public improvements liens 12
Notice of lien on account of public improvements 12–A
Amendment 13
Priority of liens 14
Assignment of lien 15
Assignments of contracts and orders to be filed 16
Assignment of contracts and orders for public improvement to be filed 17
Duration of lien 18
Duration of lien under contract for a public improvement 19
Discharge of lien for private improvement 20
Discharge of lien after notice of lien filed by payment of money into court 21
Discharge of lien for public improvement 21–A
Vacating lien for a public improvement, by order of court 22
Building loan contract 23
Construction of article 24
Enforcement of mechanic’s lien 25
Priority of liens and assignments under contracts for public improvements 26
Subordination of liens after agreement with owner 28
Lien of certain judgments postponed 29
Subordination of liens to subsequent mortgage 30
Subordination of notices of lis pendens 31
Discharge of liens on sale of real property 32
Certain liens and claims not to be affected 33
Certain sections not to apply to laborers’ liens 34
Waiver of lien 35
Waiver of arbitration 37
Bond to discharge all liens 38
Itemized statement may be required of lienor 39
Lien wilfully exaggerated is void 39–A
Liability of lienor where lien has been declared void on account of wilful exaggeration 39–C
Repossession of materials not used
Green check means up to date. Up to date

Verified:
Feb. 14, 2026

Last modified:
Sep. 22, 2014

§ 4-A. Ins. proceeds liable for demands's source at nysenate​.gov

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