Cal. Insurance Code - INS § 280. Section 280.
If the insured has no insurable interest, the contract is void.
ARTICLE 4. Insurable Interest: Generally [280. - 287.]
Cal. Insurance Code - INS 4.
in effectCal. Insurance Code - INS § 281. Section 281.
Every interest in property, or any relation thereto, or liability in respect thereof, of such a nature that a contemplated peril might directly damnify the insured, is an insurable interest.
Cal. Insurance Code - INS § 282. Section 282.
An insurable interest in property may consist in:
1.
An existing interest;
2.
An inchoate interest founded on an existing interest; or,
3.
An expectancy, coupled with an existing interest in that out of which the expectancy arises.
Cal. Insurance Code - INS § 283. Section 283.
A mere contingent or expectant interest in anything, not founded on an actual right to the thing, nor upon any valid contract for it, is not insurable.
Cal. Insurance Code - INS § 284. Section 284.
Except in the case of a property held by the insured as a carrier or depositary, the measure of an insurable interest in property is the extent to which the insured might be damnified by loss or injury thereof.
Cal. Insurance Code - INS § 285. Section 285.
A carrier or depositary of any kind has an insurable interest in a thing held by him as such, to the extent of its value.
Cal. Insurance Code - INS § 286. Section 286.
An interest in property insured must exist when the insurance takes effect, and when the loss occurs, but need not exist in the meantime; an interest in the life or health of a person insured must exist when the insurance takes effect, but need not exist thereafter or when the loss occurs.
Cal. Insurance Code - INS § 287. Section 287.
Every stipulation in a policy of insurance for the payment of loss whether the person insured has or has not any interest in the property insured, or that the policy shall be received as proof of such interest, is void.
Source: CA Legislative Counsel Bulk DataURL: https://downloads.leginfo.legislature.ca.gov/pubinfo_2025.zipFetched: 6/27/2026