Octavia Jackson
New Member
- 1
Can private lenders be on homeowners policy as mortgagee
Homeowners insurance
- Thread starter Octavia Jackson
- Start date
- 2,624
Yes.
- 2,195
It sort of depends on what you mean by private lenders. In general I would say Yes, but... there can be problems / challenges here.
I would ask your insurance agent about yoru specific insurer. If shopping for insurance, I would tell the broker / agent.
Last edited:
- 5,290
If I loan you $20, can I be on your insurance policy?
- 2,624
Theoretically, yes.
But we would have to have a mortgage contract secured by my home.
The standard homeowner policy mortgage clause:
If a mortgagee is named in this policy, any loss payable under Coverage A or B will be paid to the mortgagee and you, as interests appear.
Even if you did manage to get named on the policy, without a mortgage contract, you would have no interest in the home, so you would not get your $20 in the event of a loss.
- 4,576
Ignore Mark, it was obviously a rhetorical question. He doesn't have that kind of money, blew everything on capes
MIGA1626
Super Genius
- 222
Yes. They just need a note agreement with assignment of collateral.
ArioSoft
New Member
- 10
Private lenders, just like traditional banks, can be named as the mortgagee on a homeowners insurance policy. This helps ensure that the lender is notified in the event of a claim and that any insurance proceeds are used to repair or replace the property, protecting the investment of both the homeowner and the lender.
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