Under the mortgage clause in your homeowners' policy payments for damages may be made to the mortgage lender rather than the named insured.

Question

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The mortgage holder has a financial interest in the property and must be included in the insurance policy. If the property is damaged during the policy period, the mortgage holder may receive payment for the damages first, to ensure that the property is repaired or rebuilt. Any remaining funds would be paid to the named insured.

Under the Mortgage Clause in Your Homeowners' Policy Payments for Damages