What it does
IH 99 14 modifies the Builders Risk, Difference In Conditions, Installation, Radio And Television Towers And Equipment, and Tank Storage coverage forms. Covered loss to buildings or structures is paid to each mortgageholder shown, in order of precedence. The mortgageholder can receive payment even during foreclosure, and keeps its right to payment when the insured's claim is denied for the insured's acts or breach, if it pays premium due on request, files a sworn proof of loss within 60 days after notice and reports known changes in ownership, occupancy or risk. When the insurer pays the mortgageholder but denies the insured, the mortgageholder's rights transfer to the insurer to that extent.
Who needs it
Any IH-series account with a lender on a structure, most often construction loans requiring builders risk with the lender as mortgagee.
Quoting and selling notes
Get the lender's exact name, address and loan number for the schedule. Lenders reviewing certificates look for mortgagee status, not just additional interest or loss payee.
