Insurable Interest
/ɪnˈʃʊərəbl ˈɪntrɪst/
Definitions
- (n.) A legal right or stake in the subject matter insured, sufficient to justify insurance coverage under law.
The insured must demonstrate an insurable interest in the property before a claim is valid.
Related terms
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Commentary
Insurable interest is fundamental to prevent gambling and to ensure that the insured stands to suffer a genuine loss; it must exist at the time of the contract and, in property insurance, at the time of loss.
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