Why the necessity of an Owners Policy and a Mortgagees Policy? Don they insure against identical loss and damages?
The Owner’s Policy insures that he is the owner up to the full purchase price of the property as long as he or his heirs owns the property. The Mortgagee’s Policy insures that the lender holds a valid lien on the property up to the unpaid balance of the loan. Owner and Mortgagee Policies cover the same hazards, but in very different dollar amounts; the Owner Policies cover up to the sale price paid. The Mortgagee Policies cover up to the loan amount.
Related Questions
- What types of property does a NFIP policy insure? A NFIP policy insures against direct physical loss by or from flood to items such as: What else does a NFIP policy insure?
- Why the necessity of an Owners Policy and a Mortgagees Policy? Don they insure against identical loss and damages?
- What’s the difference between an Owner’s Title Policy and a Mortgagee’s Title Policy?
