Jun 30 2010
Mortgagee Clause
Answering the question of why mortgagees appear on any structure payments issued to policyholders on insurance claims in Michigan. Most homeowner and buisness structure policies protect the mortgagee in what is known as the mortgage clause. The mortgagee also includes trustee or loss payee. If the mortgagee is named in the policy, then any the mortgagees interest would be protected and their name would appear on any instruments of payment by the insurance company. There is also language written in most policies that will pay mortgagee’s an interest even when a claim is denied. I would advise any policyholder to read the mortgage clause section of their policy verify those specific conditions and terms.
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