Definition of "Insurable interest"

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Berkshire Hathaway HomeServices New England Properties - Wilton

Expectation of a monetary loss that can be covered by insurance. Insurable interest varies according to the type of policy. These relationships give rise to insurable interest:

  1. owner of the property;
  2. vendor (to the extent of the unpaid balance due on the property sold to the vendee);
  3. vendee;
  4. bailee (to the extent of the value of the property under his or her temporary care, custody, and control);
  5. bailor;
  6. life estates;
  7. fee simple estates;
  8. mortgagee (to the extent of the unpaid balance due on the loan to which the property is pledged as security);
  9. mortgagor.

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