Mortgagee Clause

A Mortgagee Clause is a legal provision in your policy that protects your lender’s financial stake in your home. It names the bank as the “Loss Payee,” ensuring they are compensated first in a total loss. When switching carriers, providing the correct mortgagee clause, including the lender’s specific insurance department address and your loan number, is the most critical technical step. A typo here will prevent the bank from paying your premium, which can lead to a policy cancellation.