Florida Insurance Claims Adjuster License Practice Exam

What does the Mortgage Clause in property insurance provide?

1. Coverage for the tenant

2. Special protection for the mortgagee

3. Protection for movable properties

4. Liability coverage

The correct answer is: Special protection for the mortgagee

The Mortgage Clause in property insurance provides special protection for the mortgagee, meaning the holder of the mortgagee or the lender of the property. This means that in the event of damage or loss to the property, the mortgagee will be protected and have their financial interests secured. This does not provide coverage for the tenant (A), protection for movable properties (C), or liability coverage (D), as those are typically covered by other clauses in the insurance policy. It is important to carefully review your property insurance policy to understand what is covered and what is not covered.