Bank needs to be a loss payee on the home owner policy

[Kevin Lefeuvre]

I am in the process of getting approved for a HELOC and the Bank wants to see a new declaration page with their name on it as a loss payee on the home owner policy. I have never seen this in my previous loans, even though it makes sense to me for them to become a payee after approving the loan.

Can some of you investors and lenders shed light on this matter?  Especially on when this needs to be done.  (before or after approval? )