One legal publication defines insurable interest as follows:
“The standard definition of “insurable interest” is any “actual, lawful, and substantial economic interest in the safety or preservation of the subject of the insurance free from loss, destruction, or pecuniary damage or impairment. The true measure of an insurable interest in real property is the extent to which the insured might be injured or damaged by the injury, loss, or other impairment.”
Insurable interest is a pecuniary or monetary interest in an object that would validate recovery in the scenario where an economic loss related to the object occurs. Mere title ownership or lack thereof is not dispositive of insurable interest. Legal and equitable title are factors considered as well as contractual rights to proceeds stemming from the object.
F.S.627.405 discusses insurable interests in property. This statute is separated into three subsections.
Section (1) states the following:
“No contract of insurance of property or of any interest in property or arising from property shall be enforceable as to the insurance except for the benefit of persons having an insurable interest in the things insured as at the time of the loss.”
Section (2) states the following:
“Insurable interest” as used in this section means any actual, lawful, and substantial economic interest in the safety or preservation of the subject of the insurance free from loss, destruction, or pecuniary damage or impairment.”
Section (3) states the following:
“The measure of an insurable interest in property is the extent to which the insured might be damnified by loss, injury, or impairment thereof.”
You can reach Miami Insurance Claims Lawyer J.P. Gonzalez-Sirgo by dialing his direct number at (786) 272-5841, calling the main office at (305) 461-1095, or Toll Free at 1 (866) 71-CLAIM or email Attorney Gonzalez-Sirgo directly at[email protected].
-17 Fla. Prac., Insurance Law § 27:2 (2018-2019 ed.)
-Florida Statute § 627.405