I am buying a house, and got a set of documents from my lender today. A part of that document says:
Please notify your insurance agent that your hazard insurance and if applicable, your flood insurance, should include a standard mortgage and/or loss payable clause in favor of the lender.
If I read that right, it means that if something were to happen to the house, and if I were to file an insurance claim (flood, or repairs etc.), the money would go to the lender first? It doesn't seem "right" to me. Is this kind of clause standard, or should I try to find another lender?