February 02, 2018 Articles

Insurable Interest: Coverage Even When an Insured Does Not Own the Property

The concept is easy to grasp, but can be troublesome in application

by Nicholas Goanos and Jeffrey Gionet

Insurable interest is a legal concept that requires an insured to have a financial or other interest in the claimed, damaged property before being entitled to coverage. Although this concept is easy to grasp, it can be troublesome in application, such as when an insured does not own the claimed property. Below are two case studies from Georgia and North Carolina, which show how an insurable interest may arise and how these States treat this concept. In addition, an analysis of Florida law is addressed as it relates to the insurable interests in the context of ownership (or lack thereof) of insured property. Finally, below are several suggestions a party may use when assessing the presence (or absence) of an insurable interest.

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