How do I know if I have an insurable interest?
This was a question that the lawyers at Hutchison Oss-Cech Marlatt recently argued on behalf of an insurance policy beneficiary. The insurance company denied the holder of the policy a fire insurance claim because – the insurance company said – there was no insurable interest. Hutchison Oss-Cech Marlatt disagreed. Ultimately, the defendant brought an application to dismiss the claim, but the court sided with us on the coverage of the insurance holder in Angleland Holdings Inc. v Lloyd’s Underwriters, 2021 BCSC 2019.
What is an insurable interest?
The factor that distinguishes an insurance policy from a bet at a Casino or wager is that a person has some relation to or concern in the subject of insurance (see Kosmopoulous v Constitution Insurance Co.,  1 SCR 2). For example, a person cannot take out an insurance policy on their neighbour’s home in case of fire or earthquake damage because they have no relation to or concern in the subject. However, if that person had an accepted offer to purchase that same property then they could purchase an insurance policy on that home.