When must insurable interest exist in property insurance?

In property insurance, insurable interest must exist at the time of loss. This means that the insured must have a legitimate interest in the property being covered, such that they would suffer a financial loss if the property were damaged or destroyed. This legal requirement helps ensure that insurance is used as it was intended: to protect against actual losses rather than to be used for speculative purposes.

Having insurable interest at the time of loss is crucial because it establishes the justification for the claim. If an individual does not have an insurable interest at that point, they cannot claim insurance benefits, as their financial stake in the property must be evident. This principle helps prevent moral hazard, where individuals might be tempted to cause harm to property for gain if they do not have an inherent stake in it.

Other contexts like before the policy is issued or at the time of renewal are less relevant because those instances pertain to the initial establishment of the policy rather than the actual claim event. After a claim is made does not hold since insurable interest must exist before any claim can be considered valid. Thus, aligning the requirement of insurable interest solely with the time of loss reflects the fundamental principles of insurance.