What is one of the mortgagee rights regarding proof of loss?

The correct understanding of a mortgagee's rights regarding proof of loss pertains to the protection and interests of the lender when a property insured under a mortgage suffers damage.

In the context of mortgage agreements, the mortgagee has certain rights to ensure that their investment is safeguarded. One key right is the ability to ensure the insurance premiums are paid so that the coverage remains in effect, particularly in the event of a loss. If the insured fails to pay the premium, the mortgagee may step in to pay it to maintain the insurance. This action helps protect the mortgagee's financial interest in the property, ensuring that their collateral remains covered in case of damage or loss.

The other options do not accurately represent the typical rights of a mortgagee. Filing a claim on behalf of the insured may occur, but it’s not a widely recognized right. Self-insuring the property is not a mortgagee’s right, as this refers to the property owner’s choice to take on the risk themselves without formal insurance. Limiting liability to the insured does not directly relate to the rights of the mortgagee concerning proof of loss either, as mortgagees generally seek to ensure full coverage to protect their interests.

In essence, the ability to pay insurance premiums on behalf