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
Facility that provides short periods of stay for a terminally ill person in a homelike setting for either direct care or respite. A "terminally ill" person has a life expectancy of six ...
Company organized with the business objective of providing claims adjustment services to insurance companies that do not have an internal claims department. ...
Insurance company that is licensed by a state to market and service particular lines of insurance in that state. ...
Clause in an insurance policy stipulating that the benefits under the policy will accrue to the right of the insured. For example, if the insured leaves a violin at a repair shop and that ...
Social insurance that provides benefits to temporarily disabled workers in a few states. Five states require employers to pay cash benefits if workers are disabled. They are Rhode Island, ...
Index that reflects changes in industrial output by manufacturers, mines, electric utilities, and natural gas utilities. This is a monthly index published by the Federal Reserve. ...
Group that monitors government health insurance programs. Authorized by the 1972 amendment to the Social Security Act, PSROs were set up to cut costs and minimize abuses by checking on the ...
Insurance for which (1) an application has been filed but the first premium has not yet been paid or (2) a life insurance policy that has not yet been delivered to an insured. ...
Insurance company that is organized under the state laws by which the company is licensed and that is called a domestic insurer. Also, this insurance company may be chartered and licensed ...
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.