In a situation where a home is damaged by fire, who has insurable interest if both owners are on the policy?

In a scenario where a home is damaged by fire and both owners are listed on the policy, both individuals have an insurable interest in the property. Insurable interest refers to the legal right to insure the property, which is typically based on ownership or a financial stake in the property.

In this case, since both George and Sandy are named on the policy, they share ownership of the home and thus both have a vested interest in its protection. This means that if damage occurs, both parties are entitled to the benefits provided by their insurance coverage. Their insurable interest derives from their joint ownership of the home, making them both eligible to receive compensation for any loss resulting from the fire.

The other choices do not accurately reflect the nature of insurable interest in this context. For instance, stating that only the primary insured has interest ignores the fact that both individuals have a stake in the property. The insurance company, while it provides coverage, does not have insurable interest in the property itself; its interest is in the premiums paid and managing risk. The idea that no one has insurable interest contradicts the basic principle of ownership when both parties are co-owners, ensuring that neither one is left without protection.