An insurable interest in property is a financial interest or factual expectancy in someone's property that justifies insuring such property.

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Insurable interest is a key requirement for purchasing an insurance policy. It means that the policyholder must have a financial or emotional interest in the insured property so that they would suffer a loss if the property got damaged or destroyed. Insurable interest is necessary to prevent fraud and speculative gambling on the property.

An Insurable Interest in Property Is a Financial Interest or Factual