Insurable interest (Financial interest)

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In order to establish an insurable interest, the applicant must:

Face a personal financial loss of the property is damaged or destroyed

Have a legitimate financial interest in the property: owner, mortgagee, leaseholder, etc.

This interest must exist at the time of loss but not necessarily at the time the policy purchase.

Not gain economically from the loss.

In addition, any assignment (transfer) of the rights receive policy benefits to another individual is not binding on the insurer until the insurer has become a party to the change (parol evidence rule).