vendors single interest coverage
Insurance purchased by financial institutions that protects against financial
loss from physical damage to property (collateral) on which loans have been
made. Such coverage applies in the event the borrower does not have physical
damage coverage in place. Vendors single interest insurance covers only the
outstanding balance on the loan. Even though the borrower frequently pays the
premium, he or she receives no insurance protection of his equity under such
policies.
Links for IRMI Online Subscribers Only:
CPI IX.W