Lenders Loss Payable Endorsement
What is a Lenders Loss Payable Endorsement?
A lenders loss payable endorsement is a commercial property policy endorsement where coverage is extended to a third party lender in the event that any property that they have a financial interest in is lost or damaged.
Lenders Loss Payable Endorsement in More Detail
A lenders loss payable endorsement is a commercial property endorsement. It is typically requested when a party loans money to an insured with the specific purpose of purchasing tangible property. When this endorsement is added and a property loss occurs, then the lender would be entitled to a portion of the insurance proceeds in connection with the property they issued a loan for.
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