Okuzeka
Insurance vocabulary · Policies & Contracts

Insurable interest

Meaning in insurance, with examples

nounAdvanced term

In insurance, insurable interest means: A real financial interest in the person or property being insured, so that the policyholder would suffer a loss if something happened to it.

In Turkish: sigortalanabilir menfaat, sigorta menfaati

How it is used

A legal requirement for a valid policy, discussed in training and in disputes. Owners, tenants and lenders all have an insurable interest in a building, but you cannot insure a stranger's house.

Example sentences

  1. As the lender, the bank has an insurable interest in the property until the loan is repaid.

  2. The claim was rejected because the policyholder had no insurable interest in the car.

Common collocations

  • have an insurable interest
  • lack of insurable interest
  • insurable interest in
  • policyholderThe person or company that owns an insurance policy, signs the contract and is responsible for paying the premium.
  • utmost good faithThe principle that both sides of an insurance contract must be completely honest and share all important information with each other.
  • indemnityPayment that puts the insured back in the same financial position as before the loss, no better and no worse; also the principle behind such payment.
  • insuredThe person or organisation whose life, health, property or legal responsibility is protected by a policy. It is usually written 'the insured'.

More terms: Policies & Contracts

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This page explains English vocabulary for learners. It is not financial advice.