An insurance policy that has to be taken out as a condition of obtaining a loan. It must usually be taken out via the lender's agency. See compulsory products.

Lenders offerung capped, discounted and fixed rate products may require you to take out accident, sickness and unemployment cover before mortgage monies are released. Mortgage lenders require Buildings Insurance.

Lenders require insurance in order to protect their interests in the property on which they are lending.