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Felicia Said:

What right does my Mortgage company have to lay hands on MY Homeowners Ins. Claims check?

We Answered:

Every insurance company will put the mortgage company on the check if the damages are over a certain amount. For most, it is $5,000.00. This is a fail safe for the insurance company and the mortgage company.

Lets say for instance, you have an older home, that might not be worth a lot of money, but to rebuild it after a devastating fire would be more than the market price of the home. Without the mortgage company on the check, the homeowner could just take the money and abandon the home to the mortgage company. In certain instances the mortgage company could force the insurance company to pay the claim again, to them, because they are an insured on the policy too. That is the power that the mortgagee clause of the policy gives to them.

They have a vested interest in making sure the house gets repaired.

Steven Said:

Can i claim mortgage insurance on my taxes even if i am not on mortgage but pat for it?

We Answered:

Nobody gets the interest deduction, you because you didn't owe it and your father because he didn't pay it.