What is an insured interest?

If someone suffers a loss if the subject or person is damaged or destroyed, he has an allegedly "insured interest". Insurance companies require people to have an insured interest before issuing, confirming that a person who radiates insurance stands to suffer if something happens to an insured person or subject. Simply, you can secure your car, because if something happens to it, you will suffer a financial loss, but you can not secure your neighbor's car, because if something happens to it, you will not be financially affected in the premium, although there may always be a complicated situation in the industry. Some people bought insurance as a form of speculation, effectively gambles about the ongoing existence of an object or person. Perhaps the most detriment, people pulled Police life insurance to unrelated individuals, and there are some reports that when these individuals could not die in time, the policyholders helped them. As a resultInsurance companies began to require people to have an insured interest to remove moral risks.

For real estate insurance, an insured interest is easily determined. If someone owns a house, a car, business or other type of property and the property is damaged, destroyed or made unusable, will experience a financial loss because the property must be repaired or replaced. Further losses may have indirectly; For example, if someone cannot get to work because his car is total, loses wages and may be endangered by loss of employment.

The creditors are also considered an insured interest. For example, banks that issue housing loans often require people to transport insurance, that in the event of a house, the bank can claim insurance for the assembly of loan balance. In order to collect insurance, it is necessary to organize a lien on the land.

insuredIt is a bit more complicated in people. Life insurance binding can be taken on behalf of dependent persons, assuming that the loss of the parent would cause financial loss (among other things, types of losses, which are unfortunately not insured). On the contrary, the parent could take life insurance on a dependent argument that the loss of a child could cause emotional and financial damage. Nor is the life insurance of spouses unusual. However, people do not automatically have an insured interest in all related to; For example, the niece may not be allowed to remove life insurance on his uncle, although the uncle might choose to name the niece as the recipient in his life insurance policy.