As mentioned above the lender's interest in the property must be noted on the policy document/schedule by the insurer. The lender will also then need a letter of indemnity from the insurer. I can't remember if the insurer sends this directly to the lender or if it sends it to the policyholder who then must send it onto the lender. I think it's the latter since I don't recall the insurer asking for mortgage account number etc.