When must insurance interest in a property be proven according to property insurance regulations?

In property insurance regulations, it is required to prove insurable interest at the time of loss. This principle is grounded in the necessity for the insured party to have a financial stake in the property, which is essential for a valid insurance claim. Insurable interest ensures that the policyholder would suffer a financial loss if the property were damaged or destroyed, thereby legitimizing the claim.

By needing to demonstrate this interest at the time of loss, insurers can confirm that the claimant is entitled to recover the damages based on their investment or ownership of the property. This prevents individuals from making fraudulent claims on properties they do not own or have no financial relationship with, ensuring the integrity of the insurance process. Other points in time, such as policy renewal or purchase, may involve other considerations, but the critical moment for proving insurable interest is at the time when a claim is made.