What is insurable interest and why is it important?
Insurable interest is an exposure to financial loss that a person must possess for the property insurance coverage to be legally enforceable. An insurable interest must exist at the time of the loss for coverage to be provided. Without an insurable interest, an insurance contract is a gABMling contract and thus cannot legally be enforced. Insurable interest can be created by property ownerships or legal contracts. Back to top 12. How much insurance coverage do I need? Every person’s situation is unique. Determine what coverages you want and need in order to avoid a major financial loss should something happen to you, your family member, or your property, but don’t buy more coverage than you need or can afford to pay. Also read insurance policies for exclusions, limitations, or extended coverages. Back to top Note: Most of the information provided at this Learning Center is extracted from various text books written by the American Institute for Chartered Property Casualty Underwriters (
