Pnc Bank Mortgagee Clause For Insurance (2024)

FAQs

What is the mortgagee clause on an insurance certificate? ›

A mortgagee clause is a provision in a homeowner's insurance policy that ensures any unpaid loan amount is paid if a loss or damage of property happens. This is accomplished by allocating a portion of the insurance proceeds to the lender.

Key Takeaways

A mortgagee clause is a part of your homeowners insurance policy that protects your lender—the mortgagee—from losses incurred due to damage to your property. Many mortgage providers require a mortgagee clause in place to grant a mortgage.

Many mortgage lenders require borrowers to have a homeowners insurance policy with a mortgagee clause. The mortgagee clause is a provision that protects the lender from financial loss if the mortgaged property is substantially damaged or destroyed.

To this, you then require that the coverage must be PNC. Primary and Noncontributory is commonly used in contracts to stipulate the order in which multiple policies are liable for the same loss. For example, a contractor does work for a building owner.

During the approval process, the lender will advise that the insurance policy you choose must have the proper mortgagee clause (likely documented in your commitment letter). Once you select your homeowner's insurance company, you will provide the lender mortgagee clause, including the address of the lender.

It's the address the mortgage company uses for insurance purposes. It is not the same as their corporate address. Nor the place where you send your mortgage payments. It's a seperate specific address just for insurance.

A standard mortgage clause is a provision in an insurance policy that protects the rights of a mortgagee when the insured property is subject to a mortgage. This clause ensures that the mortgagee's interest in the property is protected even if the insured mortgagor does something to invalidate the policy.

If you're interested in getting a mortgagee clause, make sure to reach out to a lender so that a mortgagee contract can be added to your current contract. Depending on the lender you choose, you may be required to agree to a mortgagee clause in your contract before you can get approved.

Key takeaways

If you're getting a mortgage to buy a home, you're the mortgagor. The mortgagee is the lender, such as a bank, credit union or online lender. This is the entity providing the funds via a mortgage to buy a home.

During the mortgage closing process, you'll sign multiple documents that spell out the terms of your home loan. A mortgagee clause is a stipulation within your homeowners insurance policy that protects your mortgage lender in the event your property gets damaged or destroyed.

What is the mortgagee clause on Wells Fargo insurance? ›

The mortgagee clause shows that your mortgage lender is protected under the policy which is required by your mortgage agreement.

A mortgagee is a lender: specifically, an entity that lends money to a borrower for the purpose of purchasing real estate. In a mortgage transaction, the lender serves as the mortgagee and the borrower is known as the mortgagor.

Primary and noncontributory endorsem*nts or policy language make a specific insurance policy primary, meaning, to go first, and noncontributory, meaning, without contribution, over other insurance policies of a specific party; this party is typically an additional insured.

PNC Bank is a member of the Federal Deposit Insurance Corporation (FDIC). The Federal Deposit Insurance Corporation (FDIC) is a federal agency organized in 1933 that insures depositors' accounts up to the insured amount at most commercial banks and savings associations.

PNC Bank, National Association is a national bank and its deposits are insured by the FDIC (up to, and in accordance with, applicable limitations and restrictions). PNC Bank is headquartered in Pittsburgh, Pennsylvania. PNC Bank is PNC's only insured depository institution subsidiary.

A standard mortgage clause (also called a union mortgage clause) is an insurance provision that covers the mortgage lender but not the borrower for a loss involving the mortgaged property. This clause protects the lender in the event that the borrower intentionally damages the property.

The insuring clause states the very purpose of the life policy; it outlines the conditions under which the policy will pay. If the insured dies, the insurer promises to pay the beneficiary the death benefit as laid out in the policy.