insurable interest
Loss would hurt
Insurable interest is a stake in something that would cause you financial loss if it were damaged or destroyed.
Insurance requires insurable interest—you can't insure your neighbor's house or a stranger's life because you'd suffer no loss.
The principle prevents insurance from becoming gambling.
She had an insurable interest in her business partner's life because his death would harm the company.
- life insuranceContract paying upon death
- statuteEnacted written rule
- vestedLegally guaranteed as yours
- skin in the gamePersonal risk in outcome
- valuationAssessment of monetary worth
fraud prevention · legal standing · good faith · property insurance · contract · stake · enforceability · financial loss · fire damage · total loss · beneficiary · subrogation · policy limits · risk assessment · liability insurance · third party · fiduciary duty · peril
- insuranceinsurance, coverage, auto insurance, life insurance, home insurance
- life insuranceterm life, whole life, life insurance, beneficiary, premium
- property insurancehome insurance, renters insurance, building insurance, fire insurance, flood insurance
- Lloyd's Insurancesyndicates, underwriters, box, slip, brokers