Such an institution loans money to the borrower, who is known as the mortgagor. To limit its risk, a mortgagee creates a priority legal interest in the mortgaged property's value, allowing it to seize such property if the mortgagor defaults on the mortgage. Insurance policies that provide coverage on buildings—homeowners insurance policies and commercial property insurance policies, for example—typically include a mortgage or mortgageholders provision addressing the rights of a mortgagee that is named in the policy with respect to the coverage on the building in which the mortagee has a legal interest.