The mortgagee clause can be found in property insurance. It establishes the rights and responsibilities of the mortgage lender in relation to the policy. Additionally, it protects the interests of the lender, also known as the loss payee, by requiring the insured to include the lender as a policy beneficiary.

This means that in the event of a covered loss that causes damage to the property, the lender, and its successors and/or assigns (ISAOA), will have access to the indemnity funds to protect their investment.

The mortgagee clause may also establish specific requirements, such as providing proof of insurance to the lender and notifying them in case of cancellation or changes. This ensures that the creditor is informed and can take the necessary steps to protect their financial interests.