Single interest insurance covers the interests of one of the two parties that co-own property. This type of insurance typically covers a portion or all of the outstanding value owed to a lender for mortgaged or leased property. Single interest insurance typically applies only to the interests of a lender or financing company. In most cases, single interest insurance covers damage to or loss of a loan’s underlying asset. Often, it also includes the cost of repossessing that asset, if necessary.
The vast majority of single interest insurance policies cover vehicles and other high-value personal property such as pleasure boats and watercraft. Single interest insurance policies commonly offer gap coverage, which reimburses lenders for the difference between the value of the asset and the outstanding loan principal. Other coverage options might include:
- Skip-protection to reimburse the expense of tracing down default borrowers
- Theft protection to cover assets which may be damaged or stolen
- Repossession coverage to offset the costs and damages incurred during the repossession process.
Most lender single interest policies are paid on a monthly reporting basis. The financial institution reports the value of secured loans, and a premium is charged for the exposure.
If you’re interested in learning more about single interest insurance coverage, contact Florida Insurance Hub. Our goal is to help you manage your insurance risks and to protect your assets. Selecting the best insurance coverage for the best value is important. For this reason, Florida Insurance Hub represents over 50 top insurance companies offering solutions to fit individual needs and resources. Florida Insurance Hub is an independent insurance agency serving all of Florida, including Titusville, Melbourne, Panama City, West Palm Beach, Tampa, Naples, Jacksonville, and Miami. We provide personal and commercial insurance quotes for homeowners insurance, auto insurance, flood insurance, umbrella insurance, commercial auto insurance, and business insurance. For a complimentary risk assessment, contact Florida Insurance Hub.