What is a loss payee?
Often times a mortgagee and/or lender may have an insurable interest in an insured property. The Mortgage Condition, or Loss Payable Condition, specifies the rights and duties of the Loss Payee under the policy. For example, if a named insured fails to file a proof of loss, the mortgagee must do so after being notified by the insurer to protect its rights under the policy. Additionally, the mortgagee may be required to pay the premium if the insured fails to do so.
