If your home is damaged while you're still paying it off, the mortgagee clause stipulates that the insurance provider will pay your mortgage lender for the loss.

The mortgagee clause is a provision in a homeowners insurance policy that protects the lender from financial loss if the mortgaged property is substantially damaged or destroyed. Many mortgage ...

The mortgagee clause is a provision in a homeowners insurance policy that protects the lender from financial loss if the mortgaged property is substantially damaged or destroyed.

The “mortgage clause” can mean you’ll need your bank’s OK before you cash that check and make repairs to your home.

If a borrower repeatedly misses mortgage payments without making arrangements with the lender, the lender may invoke the acceleration clause. Defaulting on property taxes or insurance.

A standard mortgage clause, on the other hand, creates a separate insurance policy between the insurer and the mortgagee so that even if the mortgagor breaches the terms of the policy, that breach ...

Williams, therefore, attempted a different avenue to recover insurance proceeds from Nationwide, arguing he was a mortgagee entitled to payment under the policy’s mortgagee clause.

If a borrower repeatedly misses mortgage payments without making arrangements with the lender, the lender may invoke the acceleration clause. Defaulting on property taxes or insurance.

A mortgage agreement might include a due-on-sale clause stating that the unpaid balance becomes due if the borrower sells the property.

But life gets busy, and even responsible policy holders may fall victim to a missed insurance bill, or a failed automatic payment, or perhaps an outdated mortgage clause listed on policy documents.