Definition of "Loss payable clause"

Cynthia Tant, PhD real estate agent

Written by

Cynthia Tant, PhDelite badge icon

Gulf Coast Home Experts, LLC

Coverage for a mortgagee where real or personal property, used as security for a loan, is damaged or destroyed. For example, a bank (mortgagee) lends money to an individual (mortgagor) who pledges certain valuables as security. The valuables are stolen. If the individual defaults on the loan, the bank would be indemnified under the policy for an amount up to the outstanding loan.

image of a real estate dictionary page

Have a question or comment?

We're here to help.

*** Your email address will remain confidential.
 

 

Popular Insurance Terms

Written statements on a form by a prospective insured about himself, including assets and other personal information. These statements and additional information, such as a medical report, ...

Automatically extended reporting period of 60 days, during which claims may be made after a claims made basis liability coverage policy has expired. ...

Traditional insurance plan under which the patient can select the physician and hospital of his or her choice. The patient is responsible for paying the co-payment and the deductible and ...

Rule that concerns the distribution of the aggregate surplus among the policies in the same proportion as each respective policy has contributed to the surplus. ...

Rate of increase in asset value. ...

Amount of the loss absorbed by an insurance company after deducting any reinsurance applicable to the loss, as well as subrogation and ABANDONMENT AND SALVAGE rights. ...

Health insurance that provides income payments to the insured wage earner when income is interrupted or terminated because of illness, sickness, or accident. Definitions under this ...

Coverage for the inside of an insured premises of a business firm if it experiences a loss of money, securities, personal property, and damage or destruction of real or personal property ...

Agency of the federal government formed as the result of bankruptcies of savings and loan associations during the 1930s. Insures deposits of customers up to $100,000 for each account. In ...

Popular Insurance Questions