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
Section of the insurance policy that lists all of the provisions that are applicable to the insurance coverage provided under that section. This section is attached to the policy jacket ...
Professional designation earned after the successful completion of six national examinations given by the insurance institute of America (IIA). Covers such areas of expertise as premium ...
Section of an insurance company that evaluates claims for their subsequent payment. ...
Coverage for the federal government in the event of loss due to dishonest acts of federal government employees. ...
Financial incentives credited to the policy to encourage the policyowner to keep the policy in force. The incentives may be utilized by: (1) applying them to the policy cash value after a ...
New rule entitled "Accounting for Certain Investments in Debt and Equity Securities," which requires most fixed maturity investments to be listed on the INSURANCE COMPANY'S FINANCIAL ...
Same as term Final insurance: premiums paid out of funds borrowed from the cash value of a life insurance policy. ...
Demand without foundation, such as a claim submitted to an insurance company by an insured who caused a loss, or for a loss that never occurred. ...
Coverage that provides for replacement of damaged or destroyed property on a new replacement cost basis without any deduction for depreciation. This is equivalent to replacement cost ...
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.