Insurable Interest: Property And Casualty Insurance


Definition of "Insurable interest: property and casualty insurance"

Jill Hidinger real estate agent
Jill Hidinger, Real Estate Agent Coldwell Banker Hedges 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.

Have a question or comment?
We're here to help.

 
 
 
*** Your email address will remain confidential.
 
 
 

 

Popular Insurance Terms

Popular Insurance Questions