Mortgagee clause
Home policy provision protecting the lender’s interest in the property after a loss.
Plain definition
The mortgagee clause names your lender as mortgagee with rights to receive claim payments for covered damage to the structure, even if you violate some policy conditions. The lender can endorse checks and require repairs to protect collateral.
Why it matters
Total loss checks go to both you and the bank; you cannot cash a $200,000 settlement without the lender’s agreement on rebuilding or loan payoff.
Example
Fire destroys the home; the insurer issues payment to you and the mortgagee jointly. The bank releases funds in draws as reconstruction is documented.
Common misunderstanding
Mortgagee clause protects the bank’s loan balance, not your personal belongings—that is contents coverage.
Policy language always controls. This is educational content, not advice. See our disclaimer.