mortgage clause

mortgage clause. An insurance-policy provision that protects the rights of a mortgagee when the insured property is subject to a mortgage. • Such a clause usu. provides that any insurance proceeds must be allocated between the named insured and the mortgagee “as their interests may appear.” — Also termed mortgagee clause. See LOSS-PAYABLE CLAUSE; ATIMA. […]

An insurance-policy provision that protects the rights of a mortgagee when the insured property is subject to a mortgage. • Such a clause usu. provides that any insurance proceeds must be allocated between the named insured and the mortgagee “as their interests may appear.” — Also termed mortgagee clause. See LOSS-PAYABLE CLAUSE; ATIMA. [Cases: Mortgages