Under a mortgagee loss clause, if a mortgagor-owner intentionally destroys mortgaged property:

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Under a mortgagee loss clause, if the mortgagor-owner intentionally destroys mortgaged property, the mortgagee-bank can recover from the insurance company, which can then recover its loss from the owner. This is because the mortgagee loss clause allows the mortgagee to be named as a loss payee on the insurance policy, and therefore, the insurance company is obligated to pay the mortgagee for any losses covered under the policy. The insurance company can then seek reimbursement from the owner if the destruction was intentional.

Under a Mortgagee Loss Clause, If a Mortgagor-Owner Intentionally Destroys