1. A lender shall not require a borrower, as a condition of obtaining or maintaining a loan secured by real property, to provide property insurance on improvements to real property in an amount that exceeds the reasonable replacement value of the improvements.
2. As used in this section:
(a) “Borrower” means a mortgagor, grantor of a deed of trust or other debtor.
(b) “Improvement to real property” means a fixture, building or other structure attached to real property and intended as a permanent addition to the property.
(c) “Lender” means a mortgagee, beneficiary of a deed of trust or other creditor who holds a mortgage, deed of trust or other instrument that encumbers real property as security for the repayment of a debt.