Property Insurance FundamentalsQuestion 233 of 474
Which of these people has an insurable interest in one particular house?
a.A buyer whose offer on it was rejected
b.A neighbor whose view that house frames
c.A bank holding a mortgage on that house
d.A roofer who worked on it three years ago
Explanation
Insurable interest means suffering a real financial loss if the property is damaged, and a mortgagee stands to lose its security, so it may be named on the policy. A neighbor's enjoyment of a view is not a financial stake in the building. A rejected buyer holds no ownership or contract right, and a contractor's interest ended when the finished job was paid for.
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