[A156]

alienation clause

A policy clause that details the terms, conditions, or requirements that will apply should property which is the subject of the insurance be sold and title transferred during the policy term. Two of the most common examples are the alienation clause in a mortgage insurance policy which requires that the balance of a loan be paid should the property be sold, or a property insurance policy which clarifies that the insurance coverage cannot be assigned or transferred to the new owners when the property is sold.