(1) In the event of a subsequent premium not being paid in good time, the insurer remains obliged to effect payment to a mortgage creditor who has declared his or her mortgage up until one month after the time when the mortgage creditor was informed of the setting of the deadline for payment or, if this information was not communicated, notification has been given of the termination of the contract.
(2) The termination of the insurance agreement does not become effective against a mortgage creditor who has declared his or her mortgage until two months after the time when the insurer informed him or her of the termination and, insofar as this had not occurred, until such time as the contract was terminated or he or she learned thereof in another manner. Sentence 1 does not apply if the insurance agreement is terminated on account of the non-payment of the insurance premium by means of the insurer’s rescission or termination of the contract, or the policyholder’s termination of the contract to which the mortgage creditor agreed.
(3) Subsection (2) sentence 1 applies accordingly to the effectiveness of an agreement between the insurer and the policyholder on account of which the scope of the insurance cover is reduced, or in accordance with which the insurer is only obliged to effect payment in respect of compensation to restore the insured building.
(4) The nullity of the contract of insurance cannot be asserted against a mortgage creditor who has declared his or her mortgage. The insurance agreement however expires vis-à-vis him or her two months after the time when he or she has been informed of the nullity by the insurer, or he or she has learned of the nullity by another means.