Illinois Public Adjuster Practice Exam 2025 – Complete Study Guide

An insurable interest refers to a stake in the value of an item or property that could be affected by loss or damage. In this context, an occupant of someone else's building does not have an insurable interest because they do not own the property and therefore cannot claim an interest in it for insurance purposes. Insurable interest is typically based on ownership or a financial stake, which the occupant lacks since they are merely using the property rather than owning it or having a financial obligation tied to it.

On the other hand, the property owner has a clear insurable interest because they own the building and bear the risk of loss. Similarly, the lender holding the mortgage has an insurable interest because their financial investment in the property would be at risk if the building were damaged or destroyed. Lastly, a tenant in a rented space may also have insurable interest, particularly regarding personal belongings or leasehold improvements made to the property. Therefore, the occupant of someone else's building stands out as having no claim to an insurable interest in this scenario.