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Explaining Insurable Interest   

https://zalma.com/blog

It may be said, generally, that any one has an insurable interest in  property who derives a benefit from its existence or would suffer loss  from its destruction. An insurable interest in property is any right,  benefit or advantage arising out of or dependent thereon, or any  liability in respect thereof, or any relation to or concern therein of  such a nature that it might be so affected by the contemplated peril as  to directly damnify the insured.  The term \\u201cinterest,\\u201d as used in the phrase \\u201cinsurable interest,\\u201d is not  limited to property or ownership in the subject matter of the insurance.  An insurable interest in property may arise from some liability which  an insured incurs with relation thereto. Such liability may arise by  force of statute or by contract, or may be fixed by law from the  obligations which insured assumes. 

 Moreover, an insurable interest in property does not necessarily imply a  property interest in, or a lien upon, or possession of, the subject  matter of the insurance, and neither the title nor a beneficial interest  is requisite to the existence of such an interest. It is sufficient  that the insured is so situated with reference to the property that he  would be liable to loss should it be injured or destroyed by the peril  against which it is insured. For instance, although a person has no  title, legal or equitable, in the property, and neither possession nor  right to possession, yet he has an insurable interest therein if it is  primarily charged in either law or equity with a debt or obligation for  which he is secondarily liable. [Belton v. Cincinnati Ins. Co., 353 S.C.  363, 577 S.E.2d 487 (S.C. App. 2003)]  

Insurable interest is a keystone of the concept of insurance,  safeguarding the insurer against the risk that arises if one who will  receive the monetary benefit from loss of the insured property (or life,  [in the case of life insurance,]) has no interest in the property not  being destroyed. [Woods v. Independent Fire Insurance Co., 749 F.2d  1493, 1496 (11th Cir. 1985)] It is well settled across the United States  that having title or an ownership interest is not the sole basis for  having an insurable interest in property. [Brown v. Ohio Cas. Insurance  Co., 239 Ga.App. 251, 253(2), 519 S.E.2d 726 (1999)] Rather, the test of  insurable interest in property is whether the insured has such a right,  title, or interest therein, or relation thereto, that he will be  benefitted by its preservation and continued existence, or suffer a  direct pecuniary loss from its destruction or injury by the peril  insured against. [Ga. Farm Bureau Mut. Ins. Co. v. Franks, 320 Ga.App.  131, 739 S.E.2d 427 (Ga. App. 2013)]