What Is Mortgagee Clause?
Mortgagee Clause: The wording on an insurance policy that names your lender to be paid if the home is damaged.
Also called: loss payee
The mortgagee clause is the section of your homeowners insurance policy that names your lender (the mortgagee) and its successors. It means the lender is paid, or included on the check, if there's a claim for damage to the home.
Where to get it
Your lender gives you its exact mortgagee clause wording, usually the lender's name, "its successors and/or assigns," an address and your loan number. Your insurance agent adds it to the policy.
Why it matters
Closing can be delayed if the mortgagee clause is missing or wrong on the insurance declaration page.
Good to know
If your loan is transferred to a new servicer, the servicer will send updated mortgagee clause wording to give your insurer.