Insurable interest is one of the principles of insurance. This paper looks at how ownership of goods and real property is transferred and how and when insurable interest arises.
The writer first focuses on sale of goods, highlighting relevant sections from the Sales of Good Act 1979. The requirements for formation of a contract for sale are explained, along with the timing of insurable interest for buyers and sellers. The paper then explores the sale of real property, referring to the Law of Property Act 1925 and the Law Society Standard Conditions of Sale and Standard Commercial Property Conditions.