In property insurance, insurable interest must exist at what point?

In property insurance, insurable interest must exist at the time of loss. This requirement ensures that the insured has a legitimate stake in the property being insured, which helps to prevent moral hazard—ensuring that individuals do not intentionally cause loss or damage to property they have no financial interest in.

When a loss occurs, the insured must be able to demonstrate that they would suffer a financial setback due to the damage or destruction of that property. This principle reinforces the purpose of insurance as a means of providing financial protection against loss, rather than as a vehicle for profit through claims on properties not owned by the insured.

While it is indeed important to have insurable interest at the time of policy application and potentially at renewal, it is the existence of insurable interest at the specific moment of loss that is crucial for the validity of any claim made under the policy.