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
Enacted on April 1, 1997; provides protection against creditors for irrevocable trusts provided that the trust has a grantor who is a discretionary beneficiary. In order for the statute of ...
Sum provided by a disability income insurance that pays a multiple of the monthly indemnity to cover the costs associated with a retraining course attended by the insured wage earner when ...
Under Section 1035 of the Internal Revenue Code, stipulation that the exchange of one life insurance policy for another life insurance policy will generally not result in a recognized gain ...
Insurance for owners and operators of private, municipal, or commercial airports, as well as fixed-base operators, against claims resulting from injuries to members of the general public or ...
Coverage for the insured in the event that the insured's negligent acts and/or omissions result in losses in connection with the use, ownership, or maintenance of aircraft. Liability ...
Type of coverage in which an insured's own policy provides indemnity for bodily injury and/or property damage without regard to fault. In many instances it is difficult if not impossible to ...
Same as term Concurrency: in which at least two insurance policies provide identical coverage for the same risk. ...
Clause in a reinsurance policy that excludes the reinsurer's liability for losses occurring after a stipulated date. ...
Expense listed on the Income and Expenditure accounting statement for the unexpired insurance policy owned. ...
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.