Mortgagee Clause
Insurance Glossary
A provision naming the mortgage lender on a homeowners policy and giving it rights of its own, including payment for damage to the building and advance notice before the policy is cancelled or not renewed. Claim checks for structural damage are commonly written to the homeowner and the lender together, and the lender may release the money in stages as repairs are completed. Selling or refinancing a loan changes the mortgagee, so the policy has to be updated for notices and payments to reach the right party.
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