A Reminder About Hazard Insurance Claims.

Further, the mortgagee should remind the insurer of its right to be named on any loss drafts that are issued to the borrower. In the same notice of claim to the insurer, the mortgagee should specifically request a complete copy of the policy, including any and all endorsements that are attached to the policy.

Policies typically require that the mortgagee submit a signed, sworn statement of loss or proof of loss, within 60 days after receiving notice from the insurer that the borrower has failed to submit one. It is paramount to the mortgagee's claim that this requirement be met within the 60 days.

The mortgagee has a contractual obligation under the terms of the policy to mitigate any loss and to protect the property from further damage. So, if the mortgagee finds the property to be vacant or abandoned and damage exists, then the mortgagee should take immediate action to secure the property from additional damage and to minimize any exposure of liability.

Other Policy Conditions

That Apply to the Mortgagee

The policy language will specify what other conditions apply to the mortgagee. In the most common type of form, only three conditions in the policy are typically applicable to the mortgagee. Those conditions are:

* Appraisal - This is a condition relating to the determination of value of the damaged property.