What Gives My Mortgage Company the Right to Hold My Insurance Claim Check?

This is a follow up to a blog titled;

How to Cash Your Home Owners Insurance Claim Check

Why Can My Mortgage Lender Hold My Insurance Claim Check?

But it should really be just called Part II because since writing that post  it I have received thousands of views, dozens of calls, emails and comments  and complaints which for some reason are directed at me.

What’s ironic is that I wrote the post to save the time from needlessly repeating to people I know who were asking me that same question over and over again.