Sign InGet started

What is a mortgagee clause?

A mortgagee clause is the part of a homeowners insurance policy that names your mortgage lender as a financially protected party on the property. It tells the insurer exactly who the lender is and where insurance documents and certain claim payments involving the loan should be directed.

Illustration of hands aligning an insurance document with the mortgagee clause highlighted, connected to the lender

What the clause contains

Every lender maintains its own exact clause, and it usually has three parts:

  • The lender's legal name, often followed by ISAOA and ATIMA (explained in the questions below)
  • The mailing address the lender uses for insurance documents
  • Your loan number, so documents match your file

The clause appears on your declarations page, on the insurance binder your lender receives before closing, and on any evidence-of-insurance forms issued later in the life of the loan.

Where to find it on your declarations page

Declarations pages follow a common top-to-bottom order: the policy number with the effective and expiration dates up top, the named insured and property address next, then the table of coverages and limits. Near the bottom sits a block usually labeled Mortgagee, Mortgagee clause, or Additional interest: that block is the clause. The same block appears on the binder your lender receives and on evidence-of-insurance forms later. If you refinance or your loan is sold, this is the block that gets updated.

Illustrated declarations page with the mortgagee clause block highlighted near the bottom, marked by an arrow

Illustrative example. Layouts vary by insurer; yours shows actual names, coverages, and dates.

Why the exact wording matters

Closing teams check the clause character by character: the legal name, the address, the loan number. If any part is off, the binder can be rejected and your closing waits for a corrected document. The fix is simple: never guess or copy a clause from a search result. Ask your lender for the exact language and give it to your agent as provided.

How it works during a home purchase

  1. Your lender gives you (or your insurance agent) its exact mortgagee clause and your loan number.
  2. Your agent sets up the homeowners policy with the clause included from day one.
  3. The binder listing the clause goes to the lender's closing team before your closing date.
  4. After closing, the insurer keeps the lender informed about the policy, as the clause requires.

PolicyVera keeps the clause exact

When your lender is on PolicyVera, they share the exact mortgagee clause language with your agent through the platform, so the binder is issued right the first time and your closing is not held up by a paperwork mismatch. You compare quotes from licensed local agents, choose your agent, and the documents flow to the right place.

Get startedRead the first-time buyer guide

Common questions

What do ISAOA and ATIMA mean?
ISAOA stands for "its successors and/or assigns": if your loan is sold or transferred, the clause automatically covers the new holder. ATIMA stands for "as their interests may appear": protection extends to parties with a legitimate financial interest in the property. Both are standard phrases lenders include so the clause keeps working as the loan moves.
Who gives me the mortgagee clause?
Your lender. Every lender has its own exact clause: a legal name, a mailing address for insurance documents, and usually your loan number. Ask your loan officer or closing team for it, then pass it to your insurance agent word for word.
Is the mortgagee the lender or me?
The lender. In insurance terms, the mortgagee is the party that holds the mortgage. You are the mortgagor and the named insured on the policy.
What happens if the mortgagee clause is wrong?
Your lender's closing team can reject the binder, which stalls your closing until a corrected one is issued. A wrong clause is one of the most common last-week closing snags, and it is entirely avoidable: use the exact language your lender provides.
Does adding a mortgagee clause cost anything?
No. Naming your lender on the policy is a standard part of setting up homeowners insurance for a mortgaged home, not an add-on with a price.

Setting up insurance for a mortgaged home?

Compare quotes from licensed local agents and keep every closing document in one place.

Get startedSee how it works