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What is a Mortgagee Clause?

Its information required to be added to your fire/home insurance policy to reflect the interests of your lender or also known as mortgagee. Because they have leins on your home, they are entitled to be listed as loss payee. This is done on your Insurance Policy as a Mortgagee Clause or also referred to as a Loss Payee clause. Similar to Loss Payee or Additional Interest clauses on an Auto Insurance policy.

List of Mortgage Company Loss Payee Clauses for Evidence of Insurance - EOI (Evidence of Insurance) and Declarations Pages for your Insurance Policy

These clauses might not apply to every loan in every state. Your lender will have the most up to date mortgagee clause for your particular account. Some Mortgage companies require Grade B or better AMBEST ratings and a maximum of 1% or $1000 deductible (whichever is higher). Dwelling Coverage should equal replacement cost of the physical dwelling.