Video Explaining Insurable Interest

What is an Insurable Interest?

Every first party policy of insurance requires that the insured have an insurable interest in the property that is the subject of the policy of insurance. See the video at https://youtu.be/6Vz0O6S0kGY

When multiple interests in real property insure the property, they should all ascertain that their interests are protected by asking the insurer to name them as an insured. They also have the right to purchase separate insurance to protect their interest.

An insurance contract to protect an insured from loss of property is an indemnity contract for fortuitous events. In order to be entitled to indemnity under such an insurance contract, the insured must have an insurable interest in the property.

An insurable interest may be derived by possession, enjoyment, or profits of the property, security or lien resting upon it, or it may be other certain benefits growing out of or dependent upon it.

About Barry Zalma

An insurance coverage and claims handling author, consultant and expert witness with more than 48 years of practical and court room experience.
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