In property insurance, insurable interest must exist at?

In property insurance, insurable interest is a fundamental requirement indicating a person’s potential financial loss in the event of a covered peril affecting the property. The correct perspective is that insurable interest must exist at the time of loss.

When a policyholder suffers a loss, their financial stake in the property ensures that the insurance transaction remains fair and just. If the policyholder does not have an insurable interest at that moment, they may not experience a legitimate financial loss, which undermines the ethical basis of insurance. Therefore, demonstrating insurable interest at the time of loss helps prevent moral hazard, where individuals might intentionally damage property to claim insurance payouts.

While having insurable interest at policy inception is also important, the pivotal moment is indeed at the time of loss, as that's when the validity of the claim is assessed and the insurer's obligation to compensate is triggered.