Mortgage Clause

MORTGAGE CLAUSE #

Loss, if any under this policy shall be payable to Bank, Institution or Firm specified in the schedule as mortgagee or assignee of mortgagee interest to the extent of their interest.

It is hereby agreed that in the event of loss or damage, the insurer will pay the mortgagee or said assignee to the extent of their interest and that this insurance in so far as concerns the interest therein of the mortgagee or said assignee only shall not be invalidated by any act or neglect of the mortgagor or owner of the property insured, nor by anything whereby the risk is increased being done to, upon or in any building hereby insured, without the knowledge of the mortgage or said assignee provided always that the mortgagee or said assignee shall notify the insurer of any change of ownership or alteration or increase of hazard not permitted by this insurance as soon as any such change, alteration or increase of hazard shall come to their knowledge and on demand shall pay to the insurer the appropriate additional premium from the time when such increase of risk first took place.

It is further agreed whenever the insurer shall pay the mortgagee or said assignee any sum for loss or damage under this policy and shall claim that as to the mortgagor or owner, no liability therefore existed, the insurer shall at once be legally subrogated to all rights of the mortgagee or said assignee to the extend of such payment and the mortgagee and said assignee shall due and execute all such further or other acts, deeds, transfer, assignment, instruments, and things as may be necessary or reasonably required by the insurer for the purpose of better impair the right of mortgagee or said assignee to recover the full amount of their claim.

Between the insurer and the mortgagor or owner of the property insured nothing contained in this clause shall in any way constitute or be deemed to constitute any waiver of or prejudice or affect any rights which the insurer may have against the mortgagor or owner of the property insured or lessen any obligations which may be imposed on the mortgagor or owner of the property insured either by or under this policy or by law and such rights and obligations shall as between the insurer and the mortgagor or owner of the property insured remain in full force and effect.

The insure reserve the right to cancel this policy at any time as provided by the term thereof, but in such case this policy shall continue in force for the benefit only of the mortgagee or said assignee for …………………….. days after notice to the mortgagee or said assignee of such cancellation, and shall then cease and the insurer shall have the right or like notice to cancel this agreement.