Sen. Ileana Garcia and Rep. Juan Fernandez-Barquin are backing legislation to further regulate collateral protection insurance (CPI).
CPI protects lender interests in collateral, typically a car or home, when a borrower doesn’t maintain required insurance coverage. It can be pricier than regular insurance and is usually added to the mortgage balance.
Garcia and Fernandez-Barquin’s bills, among other things, would restrict CPI use only to when homeowners don’t have insurance and prohibit insurers from covering properties they own.
Fernandez-Barquin said his bill “will implement best practices for lender-placed insurance and provide Florida’s homeowners with protections in the event of a loss.”
– Jesse Scheckner, Florida Politics