The insurer should have sufficient knowledge about the risks he accepts. Insurable Interest is a must and only then the insurance contract is enforceable at law. This principle differentiates a Contract of insurance from wager. Lack of insurable interest renders the contract null and void. The Insured should be benefited by the safety of the property or is prejudiced by its loss.
Absolute ownership entitles the owner to insure the property.
This is the commonest method whereby Insurable Interest arises. Partial Interest is also insurable e.g. a mortgagee. A creditor can also insure the life of his debtor but only to the extent of his loan. Administrators and executors i.e. officials appointed by a court of law to take care of a property may also insure the property. Relationship does not automatically constitute insurable interest.