What is the primary limit on lender interest provisions?

The correct choice highlights that the primary limit on lender interest provisions is that the lender may only collect financial interest in a property. This means that a lender's rights regarding insurance are directly tied to their financial stake in the property. They can ensure that their loan is secured by requiring insurance, but they cannot claim more than what they have invested in the property.

This provision serves to protect the insured party, ensuring that lenders cannot exploit the situation by claiming full value or dictating terms beyond their actual financial interest. It maintains the balance between the lender's right to secure their investment and the property owner's right to maintain control over their coverage and claims. The arrangement underscores that the lender's ability to enforce insurance provisions is confined to what is necessary to protect their financial interest, thereby providing fairness in the insurance framework.