Insurable Interest: Property And Casualty Insurance

Definition of "Insurable interest: property and casualty insurance"

Pam & Jason Maples<br>(The Maples Team) real estate agent

Written by

Pam & Jason Maples
(The Maples Team)
elite badge icon

Grinnell Realty

  1. owner of property has an insurable interest because of the expectation of monetary loss if that property is damaged or destroyed.
  2. 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.

Comments for Insurable Interest: Property And Casualty Insurance

Tom M Tom M said:

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  16:38:56

 
Real Estate Agent

Hi 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  06:29:48
 
 
image of a real estate dictionary page

Have a question or comment?

We're here to help.

*** Your email address will remain confidential.
 

 

Popular Insurance Terms

Total of the insurance company's mortgages whose interest has not been paid for at least three months. These are mortgages upon which the insurance company is in the process of foreclosing, ...

Coverage for an insured's liability for damage to another's property from leakage or overflow of water. Some liability policies specifically exclude water damage, including that caused by ...

Ruling that, under current tax law, an insurance company that has incurred a net income loss in a given year may charge that loss against its taxable income in a subsequent year. This ...

Correction of a contract containing a mistake in order to prevent a party to that contract from gaining from that mistake. For example, if $1,000,000, instead of the correct amount of ...

Organization of home service debit life insurance companies and combination companies. ...

Group of plans (to include section 401(k) plans and section 403(b) plans) that permit in-service withdrawals to fund a college education if a hardship exists. ...

Coverage under which the face value, premiums, and plan of insurance can be changed at the discretion of the policy owner in the following manner, without additional policies being issued: ...

Premium paid by an insured business to an insurance company from which the company subtracts charges for the cost of putting a policy on its books, premium taxes, and profit. The remainder ...

Coverage usually written as an endorsement to property policies such as the Standard Fire Policy. A loss must be by the intentional acts of vandals. This peril is of particular importance ...

Popular Insurance Questions