What Does Interest Mean?
Interest can refer to the fee that a borrower must pay to a lender in exchange for lending money. It can also refer to a party's stake in an insurance contract. In other words, a party's interest can be the assets that it stands to lose if the policy fails to cover its damage or destruction.
Insuranceopedia Explains Interest
People who have an interest in an asset stand to suffer a significant loss if that asset is destroyed. For example, if a property owner's building burns to the ground, they suffer a significant financial loss. In this case, the building would be an interest of the property owner. People with an interest in a valuable asset commonly buy insurance policies to protect themselves from such financial losses.