Can you insure a house that you do not own or have financial interest in?

In the context of insuring a house, the principle of insurable interest is key. A person or entity can only purchase insurance on property if they own it or have a financial interest in it. This is because insurance is designed to provide protection against loss, and only those who would suffer financially from a loss have the right to insure that property.

If someone attempts to insure a house they do not own and have no financial stake in, this goes against the foundational principles of insurance. In such cases, the insurance company would not provide coverage because there is no financial risk incurred by the individual seeking the insurance. This principle prevents moral hazard, which refers to the increased risk that one party may engage in reckless behavior because another party bears the cost of that risk.

Therefore, the assertion that one cannot insure a house that they do not own or have a financial interest in is firmly grounded in the rules governing insurable interest, making the statement true.