A standard mortgage clause is typically included stating that the lender gets the
benefit of the policy regardless of the actions of the borrower.  TX does not require this clause because the lender is already statutorily protected.
-    There is a 30 day right to notice to the lender if the borrower fails to pay the premiums.
-    Mortgage document stipulates:
1.    If the lender is not named as an additional ID, in TX, the lender has an equitable lien on any proceeds.
2.    Policy should be for full replacement costs or the amount of the loan, typically whichever is greater.
3.    Standard mortgage clause and non-cancellation notice language.
4.    How the insurance proceeds will be used in the event of casualty – to paydown the mortgage or restore the real estate?