Under which circumstance can a mortgagee receive advance notice of coverage cancellation in Texas?

In Texas, a mortgagee is entitled to receive advance notice of coverage cancellation specifically when the coverage is canceled. This obligation is part of the protections afforded to mortgagees under state law, ensuring they are aware of any changes that could affect the property's insurability. Advance notice allows the mortgagee to take necessary actions to protect their financial interests, such as obtaining a new policy or seeking alternative insurance options.

The rationale behind this requirement is to maintain transparency and safeguard the mortgagee's investment, providing them time to act before any lapse in coverage could impact the property or their financial stake in it. This is particularly important, as mortgage agreements usually stipulate that the property must be adequately insured throughout the life of the loan.

While other scenarios like policy renewals or claims might involve communication between the insurer and the insured, they don't specifically necessitate advance notification to the mortgagee about coverage cancellation. The direct relationship and mandatory notification come into play solely during the cancellation of the insurance coverage itself.