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New Florida law adds guardrails to lender-placed property insurance

Companies in Florida that provide lender-placed property insurance will soon have to operate under a new set of rules due to a law going into effect next month.

The measure (HB 793) addresses collateral protection insurance, also called CPI, which protects a lender’s interest in a piece of collateral property — typically a car or home — in the event a borrower fails to maintain required insurance coverage.