The possible consequence of loss or damage to property creates an insurable interest. This indicates that a person has an insurable interest to the extent of:

A person has an insurable interest to the extent of their ownership in the property. This means that if someone has legal ownership or a financial stake in the property, they have the right to insure it. Insurable interest is a fundamental principle in insurance that helps prevent moral hazard and ensures that the insured person will suffer a financial loss if the property is damaged or destroyed.

Ownership implies a vested interest in the property's value and the potential financial consequences of any loss or damage. As such, the amount of coverage available typically reflects the ownership interest rather than other metrics such as market value, insured amount, or the property's overall significance. This relationship reinforces the idea that insurance is there to protect against actual loss experienced by the owner rather than speculative interests.