Principle of Insurable Interest - Insurance Contract, Principles of Insurance Video Lecture | Principles of Insurance - B Com

hi everyone welcome to insurance lecture
part 5 my name is Rebecca and I am your
insurance lady and today I'm going to
talk to you about insurable interest
insurable interest is kind of what it
says if you have something that can be
insured and you have an interest in it
then you would have an insurable
interest if something happened to an
asset that you would suffer a loss and
you wanted to insure it you would have
insurable interest in that asset so
insurable interest exists when a
person's interest in an asset could
cause them to suffer a financial loss or
another kind of loss it has to exist at
the time of application and at the time
of loss and I'm going to talk I'm going
to come back to that so an order person
to have an insurable interest in a
property they have to have a legitimate
concern in that property so based on
what you know already let's talk about
my house this is a house that I own
do I have insurable interest in this
home yes yes because I own it so if
something happened to this home then I
would suffer a financial loss so I do
have insurable interest in my own home
now what about my family who live in my
home does my family my kids my husband
do they have insurable interest in my
home absolutely
they have insurable interest in my home
even though they did not purchase the
home they live there and their personal
property is in that home and if the
house burned down that ps4 is gone so
that those expensive items that belong
to the family in the home would be gone
they have an insurable interest they
have a
vested interest in that home therefore
they can be insured you know for because
they are a family of that home so
insurable interest in order for a person
to have an insurable interest in a
property they must have a legitimate
financial concern in that property for
example like we just talked about people
who have an insurable interest in a home
are going to be the homeowners because
those are the people who are financing
the home something happens they suffer
loss the family in the home they have
their personal property in that home
something happens they suffer a loss the
mortgage company the lender if something
happens to that home and and the
homeowners are financing that home a
lender is concerned about getting their
money back so they may suffer a loss so
those are the parties who have insurable
interest does my neighbor have insurable
interest in my home no my neighbor does
not have insurable interest in my home
so going back to insurable interest must
exist at the time of application and at
the time of loss what does that mean you
have to have an insurable interest in an
asset when you are applying for
insurance
I cannot go down and grab my neighbor's
car and say hey I want to put insurance
on my neighbor's car just because I want
to put insurance on my neighbor's car
that's not it's not going to happen
because there's no insurable interest
I have no inche I don't drive my
neighbor's car I don't own it there's
nothing that ties me to suffering any
type of financial loss if something had
happens to that car
so I don't have insurance it doesn't
exist at the time of application
if my neighbor had insurance on their
car and they sold the car to me but they
kept insurance on their car and I've
already purchased the car got into an
accident if I go and file a claim under
my neighbors insurance policy that
insurance company is probably going to
say no because insurable interest did
not exist at the time of loss not me but
my neighbor my neighbor did not have
insurance for their old vehicle because
it was no longer theirs it did not exist
at the time of loss and therefore I
should have gotten insurance on my
vehicle that I purchased when I
purchased it okay so hopefully this
helps you guys this is my lecture number
five and if you have any questions feel
free to email me my email address is
insurance lady PC at gmail.com I look
forward to seeing some emails in my
inbox and thank you again my name is
Rebecca and I am your insurance lady