To insure any property, the insured must have

To insure any property, the insured must have an insurable interest. Insurable interest refers to the legal or financial interest that a person has in a property or event, which would be negatively affected if the event or damage occurs. In insurance, insurable interest ensures that the person taking out the insurance policy has a valid interest in the insured property or event, and will be motivated to prevent any loss or damage from happening. For example, a person who owns a house has an insurable interest in that property, as any damage to the property would negatively affect their financial interest in it.