What does Collateral Value Insurance mean? Read on to discover the definition & meaning of the term Collateral Value Insurance - to help you better understand the language used in insurance policies.
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.
We hope the you have a better understanding of the meaning of Collateral Value Insurance.