Mortgage Interest Insurance

Mortgage (bank or any other financial institution), which is indicated in a Hull & Machinery policy as Co-Assured, may additionally protect their investments through Mortgage Interest Insurance. This cover works when Insurers refuse to compensate Shipowner a loss. Such situation may occur if Shipowner violates insurance conditions, for example, breach of the policy provisions on trading territory. Sum Insured is usually an amount of loan, however, it cannot exceed insurance value of the vessel.