what is mortgagee clause?
what is mortgagee clause?
mortgagee clause and fax # to send invoice for hazard insurance
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A mortgagee cluase is how the lender wants their name and address to appear on legal documents. There are several different mortgagee clauses for insurance, title work, and a CPL. Typically the insurance company and title or escrow company will need the mortgagee clause information to record who has the lien.
It is kind of the same thing as when you get a new car, and you call your insurance company, and they ask you who the lender is. Basically, they want to know who has ownership interest in the car they are insuring.
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It should be noted here that it also grants continuous coverage for the benefit of the mortgagee in case the policy is voided by some act of the insured.
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That would be mortgage insurance, not the actual mortgagee clause. The insurance grants continuous coverage, but that is offered by a third party i.e. Genworth, Radian, MGIC etc. They do not appear on the mortgagee clause itself, that is usually how the lender wants their name ot show on the CPL, and HOI.