§ 3.2 Insurable Interest - Extent to Which Interest Is Insurable

• Library: Guide to South Carolina Liability and Property Insurance Law (SCBar) (2019 Ed.)

§ 3.2 Insurable Interest - Extent to Which Interest Is Insurable

South Carolina courts have determined that 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.⁸ Further, it has been explained that although insureds may have no legal or equitable title in the property, and neither possession nor right to possession, they may still have an insurable interest in the property if it is primarily charged in either law or equity with a debt or obligation for which the insureds are secondarily liable.⁹

A party cannot have an insurable interest in an...