The HO policy's Mortgage Clause continues to protect the lender (mortgagee) even if the insured/homeowner has committed fraud against the insurer.

Question

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The Mortgage Clause states that the insurer will pay any loss to the mortgagee even if the insured committed fraud or misrepresented information. This clause is included to protect the lender's financial interest in the property.

The HO Policy's Mortgage Clause Continues to Protect the Lender