Lienholder
Definition:
A lender or entity that has a financial interest in property until a loan is paid off.
Explanation:
Mortgage companies are common lienholders. They’re usually listed on insurance policies to ensure claim payments protect their interest.
Example:
If your home burns down, the mortgage company (lienholder) is named on the insurance check along with you.
Why it matters:
This term affects how claims are handled and what payout a homeowner may receive.