The purpose of insurance is to return you to the same financial position after a loss as you were in before the loss occurred.
Therefore if you will not suffer financially from the loss of or damage to property (a car or an item in your home) then you cannot insure that property. To put this another way, you must have an insurable interest in the property you propose to insure.
It is obvious that if you own something, having paid for it, then you have an insurable interest in it. If someone steals your bicycle you will suffer financially from that loss.
In a lot of cases ownership isn’t just as clear cut as this. What if...Read more
Date:May 03rd, 2018