Financial institutions involved in credit transactions may be exposed to heavy losses due to uninsured collateral. The cost to enforce insurance provisions and the number of repossessions caused by uninsured collateral has created the need for this coverage. Collateral protection insurance covers physical damage to collateral held by the lender. When the borrower breaches its contract and does not insure the collateral as it agreed to in the contract, this coverage is activated and the price of the insurance is added to the borrower's monthly payment. This coverage protects only the lender's interest. Autos, pickup trucks, vans, motorcycles, campers, motor homes, travel trailers, and boats are examples of property that this insurance covers.