Insurable Interest: Property And Casualty Insurance
Definition of "Insurable interest: property and casualty insurance"
- owner of property has an insurable interest because of the expectation of monetary loss if that property is damaged or destroyed.
- creditor of an insured has an insurable interest in property pledged as security.
Insurable interest has to exist both at the inception of the contract and at the time of a loss. For example, an insured can purchase a homeowners policy because of insurable interest in a home. Upon selling it, the insured no longer has an insurable interest because there is no expectation of a monetary loss should the home bum down.
Popular Insurance Terms
Table used in health insurance premium rate calculations that depicts the probability that a claim will continue by time and amount. ...
Circumstance that increases the likelihood or probable severity of a loss. For example, the storing of explosives in a home basement is a hazard that increases the probability of an ...
Federal act composed of amendments to the Product Liability Risk Retention Act of 1981 and enacted to make the procedures more efficient for creating risk retention groups (capitalized, ...
Same as term Contract Holder: in insurance, individual with rightful possession of an insurance policy, usually the policyowner. ...
Agents' records showing when clients' policies expire. ...
pool that contains various reinsurance companies with each sharing reinsurance contracts on a pro rata basis as they are submitted to the pool. market that operates much like the New York ...
Coverage on an all risks basis for fur garments belonging to customers of a furrier. ...
Difference in the amount of losses between the beginning and end of a time period. ...
Exception in general liability policies for all expenses associated with product recall. In recent years, there have been increasing instances of federal recalls. In addition, there have ...
Comments for Insurable Interest: Property And Casualty Insurance
Can I, as landlord, obligate my tenant to purchase property insurance for the real estate property that I own and is being leased?
Oct 09, 2019 16:38:56Hi Tom! Yes, as a matter of fact, you can obligate your tenant to buy renter's insurance if it is one of the mandatory clauses of the original contract. If it isn't, you're going to have to modify the original contract through novation between you and your tenant.
Oct 10, 2019 06:29:48Have a question or comment?
We're here to help.