Mortgage companies require homeowners insurance because they have an interest in the home. When you get a mortgage you are getting a secured loan, the security is in the form of collateral, which happens to be the house.
If the house is destroyed so is the collateral that the loan is based upon. A mortgagee will require that it be the loss payee on the home in the event it is destroyed.
If the home is destroyed, the insurance company will pay out to the mortgagee, but you will be entitled to any payment that is above the outstanding loan.
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If the house is destroyed so is the collateral that the loan is based upon. A mortgagee will require that it be the loss payee on the home in the event it is destroyed.
If the home is destroyed, the insurance company will pay out to the mortgagee, but you will be entitled to any payment that is above the outstanding loan.
I hope this helps.