CPI Insurance: Meaning
CPI Insurance stands for Collateral Protection Insurance. It is a type of insurance placed on a borrower’s property (e.g., vehicles or homes) by a lender if the borrower fails to provide proof of adequate insurance coverage. CPI ensures that the lender’s financial interest is protected in case of damage, loss, or other risks to the collateral.
Synonyms
Force-placed insurance
Lender-placed insurance
Collateral coverage
Loan protection insurance
Asset protection insurance
Secured property insurance
Creditor protection insurance
Vehicle collateral insurance
Borrower insurance
Lienholder insurance
Antonyms
Voluntary insurance
Personal insurance
Comprehensive insurance
Standard auto insurance
Homeowner’s insurance
Borrower-selected insurance
Uninsured
Self-insured
Non-collateralized
Optional coverage
Short Sentence Examples
The lender added CPI insurance to the loan when the borrower didn’t provide proof of coverage.
CPI insurance ensures the lender is protected if the collateral is damaged.
Borrowers can avoid CPI insurance by purchasing their own policy.
The cost of CPI insurance is often higher than standard insurance.
Many borrowers are unaware of CPI insurance until it’s added to their account.
