Which clause within a property insurance policy specifies that payments made for claims do not benefit any party other than the insured?

The no benefit to bailee provision is a critical component of property insurance policies, as it explicitly states that claims payments made by the insurer are meant to cover the losses of the insured party only. This provision prevents third parties, such as bailees (individuals or entities in possession of property owned by another), from receiving any payment or benefit from a claim made under the policy. By including this clause, insurers limit their liability and ensure that only the insured can claim compensation for losses covered by the policy.

This protective measure is particularly important to maintain clarity and contractual integrity within insurance agreements, ensuring that there are no disputes regarding claims payments being diverted to non-insured parties.

In contrast, the other options do not serve the same function. For example, the loss payable clause pertains to conditions under which the insurer will direct payment to certain parties, typically involved in a secured interest in the property, while the assignment provision deals with the insured's ability to transfer their rights under the policy. The mortgage clause primarily relates to how claims are settled when there is a mortgage on the property. Therefore, the no benefit to bailee provision specifically addresses the unique situation of preventing unentitled entities from receiving claim benefits.