Definition Of Insurable Interest In Insurance

Definition of "Insurable interest"

Danilo Tavares, Real Estate Agent Dezer Platinum Realty

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:

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