As a mortgagee, what if ins. co. failes to include my name on loss payments?

Question

And fails to even notify me of a loss in which they paid out more to the insured than the property was valued at?

Answer 1

If you are not the owner of the policy then you don't get the payment. What was someone else doing with the insurance on your property? Something is missing here.

Answer 2

Then you have a lawsuit against the mortgagee. That's the whole idea behind a mortgagee clause - as long as you have a declarations page that shows YOU as first mortgagee, they have to list you as a payee on any claim check for REAL property, over $2500.

They don't notify you of the loss, though, but they DO have to include your name on the check. YOu don't find out about the loss, until the insured brings you the check to sign so they can cash it.

VAlue, well, that's a problem. INsurance companies insure the cost to rebuild. Mortgagees like market value. So it's apples and oranges. Frequently, the cost to rebuild IS much higher than market value, especially in yucky neighborhoods.