What is a mortgagee clause?
A mortgagee clause is a provision included in a property insurance policy protecting the mortgagee (lender) from financial loss in the event of damage -- physical or otherwise -- to the property.
In other words, if the property suffers damage, the insurer agrees to financially compensate the mortgagee for their portion of the loss.
How to add a mortgagee clause
If you are a private lender providing a private loan to a real estate buyer (borrower), you can have the borrower contact their property insurer to add a mortgagee clause with you as the mortgagee.
Here is a mortgagee clause for an OfferMarket single family rental property that is insured by Steadily Insurance:
American Heritage Lending LLC ISAOA/ATIMA
485 E. 17th Street, STE 220
Costa Mesa, CA 92627