An insurable interest is typically described as being the insured's financial stake in what is being insured.

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An insurable interest refers to the financial or other interest that the insured has in the property being insured. Without an insurable interest, the insurance contract could be considered a form of gambling or speculation, which is generally not allowed. Therefore, having an insurable interest is a key requirement for obtaining insurance coverage.

An Insurable Interest Is Typically Described as Being the Insured's