As thousands of Louisiana residents continue to pick up the pieces following a devastating flood earlier this month, they may soon be in store for another round of bad news, reports MarketWatch staffer Daniel Goldstein.

The “mortgage clause” could present hassles for many homeowners with a mortgage who file claims with their property insurance carriers. Often, those homeowners will have to get their mortgage holder’s OK before they cash that check to rebuild their home.

The mortgagee clause requires insurance companies to write some checks out to not just the homeowner, but the bank holding the mortgage — which could make it difficult for policyholders to access the cash needed to fix their house if it sustains damage in a hurricane.

Since mortgage holders don’t have a financial interest in a homeowner’s personal property such as a car, furniture, or clothing, getting an initial insurance claim check for personal property losses during a disaster is usually pretty simple. But getting insurance money for the actual home can be difficult.

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