Both mortgagor and mortgagee have an insurable interest with respect to a loss suffered by the mortgaged premises. The insurable interest of the mortgagor is the value of the premises and the mortgagee's insurable interest is the amount of the mortgage debt for more information read more here. See Nelson and Whitman, Real Estate Finance Law 4.14 (3d ed.1994) of course, a mortgagee is not allowed to collect both the proceeds of its casualty insurance policy and the full debt as well; doing so would result in a windfall and unjust enrichment.
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June 2015
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