What it does
BP 04 09 adds the mortgagee, assignee or receiver shown in the Schedule as an insured, but only for its liability as mortgagee, assignee or receiver arising out of the ownership, maintenance or use of the designated premises by the named insured. In the 01 06 text, structural alterations, new construction and demolition operations performed by or for that party are excluded.
Who needs it
Owners of apartment, office and retail buildings financed by commercial mortgages whose loan documents require the lender to be an additional insured on the liability coverage as well as mortgageholder on the property coverage.
Quoting and selling notes
- The mortgageholder clause on the Declarations protects the lender's property interest; this endorsement addresses liability. Lenders often ask for both.
- Use the exact lender name and "its successors and/or assigns" wording from the loan documents, and identify the premises.
