In order to have an insurable interest, an individual MUST

While occupying the property may indicate a vested interest, it is not a requirement for insurable interest. An individual can have a financial interest in a property they do not occupy, such as a landlord or an investor, who stands to lose financially if damage occurs.

Entering into an insurance contract does not, in itself, establish insurable interest. An individual could enter a contract without having the requisite financial stake in the insured subject, thus rendering the contract void. Insurable interest must exist prior to the formation of the insurance contract.

Subrogation rights relate to the insurer's ability to recover costs from a third party after compensating the insured. This does not affect the establishment of insurable interest; rather, it pertains to the claims process post-incident. Insurable interest is concerned solely with the potential for financial loss before a policy is enacted.