Home > Glossary

Collateral Value Insurance


Insurance that guarantees the value of property pledged as collateral for a loan. The amount of recovery under such a policy is the difference between the liquidated value of the collateral to the creditor and the outstanding loan balance at the time of liquidation. Such insurance is written primarily in connection with short-to-medium-term equipment loans.

Get started IRMI Sidebar ad
Agricon sidebar banner


Social Media

User ID: Subscriber Status:Free