Insurance Clause

Definition: A loan-document provision requiring the borrower to maintain specified property insurance to protect the collateral.

Example

A mortgage requires the borrower to maintain adequate coverage and provide evidence of the policy.

Keep the distinction clear

The clause does not mean every hazard is insured. Required coverage, exclusions, lender protections, and consequences of a lapse depend on the documents and applicable law.

Related terms

Hazard Insurance · Mortgage · Maintenance Clause

Keep studying

Mortgages: Borrower, Lender, Ownership, and Key Clauses

References: California DRE: real estate glossary · CFPB: mortgage key terms

Pronunciation (US): in-SHOOR-unss KLAWZ (capitals show stress)

Pronunciation reference: Merriam-Webster