I have received several requests in the last couple of years to add mortgagees as loss payees on commercial structures but not just with respect to the lender's direct interest in the mortgage on the building. Some also request to be added as loss payees with respect to business income or rental income derived from the building.

We do not have a loss payee or mortgagee endorsement to accomplish this, and there is a general feeling that providing loss payee status to a lender (with respect to loss of rents) is something that we should not do.

What is the rationale for not doing so, other than it is something that traditionally has not been done?

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