Insurance Glossary

Insurable interest

Last reviewed 25 July 2026 · by the Savvy Insurance editorial team

What is insurable interest?

Insurable interest means you'd suffer a financial loss if the insured item were damaged or lost - a requirement for valid cover. You must have it in the car, home or item you insure.

Example

He had insurable interest in the car because he owned and paid for it.

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