Insurable Interest


Definition of "Insurable interest"

Nancye Hancock & Richard Volz
Nancye Hancock & Richard Volz RE/MAX Real Estate Center - Oldham County

A relationship with a person, thing, or item that is the foundation of an insurance policy. One having an insurable interest has a financial stake in preserving the insured person or property. An example is a wife having an insurable interest in her husband's real property.

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

 
 
 
*** Your email address will remain confidential.
 
 

Search Real Estate Terms

 

Popular Real Estate Terms

Factual Expectation

Strong expectation of an occurrence resulting in a monetary interest that gives rise to an insurable interest. For example, a daughter has a strong ex ...

Incorporeal Interests

Right to insurable interest in property such as the right of a secured creditor in the property pledged as security. ...

Original Cost Less Depreciation

Actual price paid for property when acquired, minus depreciation. Original cost less depreciation is used to compute actual cash value, which is often ...

Insurable Interest

Expectation of a monetary loss that can be covered by insurance. Insurable interest varies according to the type of policy. These relationships give r ...

Assignment Of Policy

Right of a party, the assignor, to allocate the benefits of certain insurance policies to a third party, the assignee. Insurance on real estate may as ...

Property

(land and attachments) and personal (movable effects not attached to land). Both classifications of property give rise to an insurable interest. ...

Popular Real Estate FAQ

What Is A Survey?

A survey is an examination of a property\'s boundaries to determine the quantity of land, location of improvements, and other information. Usually the ...

How Much Money Can I Borrow To Buy A Home?

To begin, you\'ll need to figure out what your gross income is (before taxes) monthly and yearly. To get a quick ballpark figure, take the yearly inc ...

What Is A Principal?

Principal is the amount of money borrowed and still owed on a loan not including the interest. ...

What Is A Default?

A default is when a person fails to make payments on a loan. ...

What Does An Appraisal Mean?

An appraisal is an estimate of the value of a certain property by a qualified, independent individual. ...

What Is Underwriting?

Underwriting is the process of evaluating a loan to determine whether the loan is a good risk. ...

Read why Real Estate Agent rates 5 Stars in 10 Agent Reviews
Read Reviews

Agents join here
Add our widget on your Website

Real Estate Advice

LISTINGS 101: What You Need To Know When You Hire a Real Estate Agent or a Broker Top Five Reasons Your Home Offer was Rejected Top Things to Budget for When Rehabbing a Flip House The Fine Line Between Representing Both the Buyer and Seller 6 Reasons you are not selling properties

FAQ

Do I need Earthquake Insurance? What is equity? What is a treasury index? What is Freddie Mac? What is an agent?