Escrow & Title
What is a 'mortgagee clause' in a Delaware property insurance policy?
AA clause protecting the insurer from foreclosure claims
BA provision in the insurance policy naming the lender (mortgagee) as an additional insured and directing the insurer to pay claims to both the owner and lender✓ Correct
CA clause allowing the lender to increase the property's insured value
DA provision allowing the lender to cancel the insurance policy
Explanation
A mortgagee clause (standard mortgage clause) names the lender as an additional insured, protecting the lender's interest even if the owner's coverage is voided (e.g.
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