Insurable Interest: Property And Casualty Insurance
Definition of "Insurable interest: property and casualty insurance"
- owner of property has an insurable interest because of the expectation of monetary loss if that property is damaged or destroyed.
- creditor of an insured has an insurable interest in property pledged as security.
Insurable interest has to exist both at the inception of the contract and at the time of a loss. For example, an insured can purchase a homeowners policy because of insurable interest in a home. Upon selling it, the insured no longer has an insurable interest because there is no expectation of a monetary loss should the home bum down.
Popular Insurance Terms
In property insurance, a stipulated agreement between the insurance company and the insured that the amount of insurance coverage under the policy is sufficient to be in compliance with the ...
Sum total of an employee's job-related injuries resulting in disabilities over the working career. For example, exposure to radiation over many years on the job would have a compounding ...
Insurance company's investment in mortgages that have defaulted (mortgages in default) divided by its adjusted surplus account. The smaller this ratio, the more financially sound the ...
Futures contracts (legally binding contract that stipulates that delivery of an asset will be taken or delivery of an asset will be made at a future time at an agreed upon price at the ...
Company formed to insure the risks of its parent corporation. Reasons for forming a captive insurance company include: Instances when insurance cannot be purchased from commercial insurance ...
Type of universal variable life insurance policy that provides guideline premiums to be paid usually by the policy owner. Charges on a monthly basis usually include the cost of insurance, ...
Measurement of income received by households from employment, self-employment, or investment and transfer payments, as provided monthly by the United States Department of Commerce. ...
Same as term Maximum Foreseeable Loss: worst case scenario under which an estimate is made of the maximum dollar amount that can be lost if a catastrophe occurs such as a hurricane or ...
Types of reinsurance instruments under which the amount of risk transferred is more limited than under traditional risk reinsurance instruments. The limitations on risk transfer take the ...
Comments for Insurable Interest: Property And Casualty Insurance
Can I, as landlord, obligate my tenant to purchase property insurance for the real estate property that I own and is being leased?
Oct 09, 2019 16:38:56Hi Tom! Yes, as a matter of fact, you can obligate your tenant to buy renter's insurance if it is one of the mandatory clauses of the original contract. If it isn't, you're going to have to modify the original contract through novation between you and your tenant.
Oct 10, 2019 06:29:48Have a question or comment?
We're here to help.