Loss Payable Clause

This clause protects a mortgagee's interest in property. If there is a loss payment then the mortgagee is named on the payment with the insured.

On your automobile policy you will see this endorsement if your vehicle is financed. If there is a claim and the vehicle is written off then the cheque will be in both the name of the finance company and your name. This is to protect both your interests.

Finance companies like to have documentation. If you receive a request for a copy of your insurance then just notify your broker. Normally a copy is sent out either by the insurer or the agent who represents you. This confirms the coverage that is in place.

If you chose to reduce your coverage you might need permission from the lending company. There could be a requirement to keep "full" coverage in force.