Definitions for "INSURABLE INTEREST"
A basic requirement of insurance in order for the contract to be valid; there must be present the possibility for monetary loss in the event, say, of the death of the life assured.
The potential for financial loss associated with damage or destruction of property.
The fact that the person effecting the insurance must suffer a financial loss at the death of the proposed insured. For the policy to be issued, both the owner and beneficiary must have an insurable interest.
The person or thing that is being insured. Also, the real dollar value of someone's claim in a particular thing.