To purchase property insurance, the would-be insured must have an interest in the property such that he would suffer a loss if the property were damaged.

Question

Quizplus · Accepted Answer

This is because property insurance is designed to protect the financial interest of the owner of the property in the event that it is damaged or destroyed. If the insured has no financial interest in the property, then he would have no reason to purchase insurance. Therefore, having an interest in the property is a necessary condition for obtaining property insurance.

To Purchase Property Insurance, the Would-Be Insured Must Have an Interest