At AEI Insurance Brokerage, we believe it’s essential to understand the concept of insurable interest and how it affects your Property and Casualty Insurance. As an insurance provider serving clients nationwide from our base in New Jersey, our goal is to ensure you have the right coverage at the best price.

What Is Insurable Interest?

Insurable interest is the stake you have in the property or asset being insured. Essentially, if you suffer a financial loss because of damage or destruction to that property, you have an insurable interest in it. For example, if you own a home, you have an insurable interest because you would face financial hardship if something were to happen to that home.

Why Is It Important?

Insurable interest matters most at the time of loss. When you file a claim, you need to prove that you have a financial interest in the property. If you don’t, your insurance company won’t pay the claim. Without insurable interest, the contract between you and the insurance company is void.

For example, if you try to insure property you don’t own, you won’t receive a payout if something happens to that property. Insurers want to ensure that claims are legitimate, and having insurable interest helps prevent fraud.

The Consequences of Not Having Insurable Interest

If you don’t have insurable interest at the time of loss, you could face several issues:

• No payout on claims: Even if you’ve been paying premiums, your claim will be denied.
• Legal complications: Trying to insure something you don’t own could lead to legal troubles, as it may be seen as an attempt to commit insurance fraud.

At AEI Insurance Brokerage, we work closely with our clients to ensure they have the appropriate coverage and that all insurable interests are clear and in place. This helps avoid any unpleasant surprises when a claim is made.

How AEI Can Help

Our job at AEI is to handle your risk management. We review your policies to make sure you’re covered for the right risks and that your insurable interest is properly documented. This way, if you ever need to file a claim, you’ll be protected. Our team is here to help you manage risk, so you can focus on what matters most. At AEI Insurance Brokerage, we’re committed to providing the right insurance solutions for your needs, no matter where you are in the U.S. Contact us today to learn more about how we can help you secure the best coverage for your property.