Code of Alabama
Ala. Code § 27-14-4 (2026)
Insurable Interest - Property Insurance.
✓ official Alabama Legislature (ALISON) text, current July 2026
(a) No contract of insurance of property or of any interest in property, or arising from property, shall be enforceable as to the insurance except for the benefit of persons having an insurable interest in the things insured as at the time of the loss.
(b) “Insurable interest,” as used in this section, means any actual, lawful and substantial economic interest in the safety or preservation of the subject of the insurance free from loss, destruction, or pecuniary damage or impairment.
(c) The measure of an insurable interest in property is the extent to which the insured might be damnified by loss, injury, or impairment thereof.
(Acts 1971, No. 407, p. 707, §317.)
Notes of Decisions
Cited in 15
cases (2 in the last 5 years), 1989–2026 · leading case: In Re Suter, 181 B.R. 116 (Bankr. N.D. Ala. 1994).
In Re Suter, 181 B.R. 116 (Bankr. N.D. Ala. 1994). “Ala.Code 1975, § 27-14-4(a). An “insurable interest” is an “actual, lawful and substantial economic interest in the safety or preservation of the subject of the insurance free from loss, destruction or pecuniary damage or impairment.”
Nationwide Mut. Fire Ins. v. Guster Law Firm, LLC, 944 F. Supp. 2d 1116 (N.D. Ala. 2013). “Ala.Code § 27-14-4. As a result, Alabama courts have held that any person who has a “reasonable expectation of pecuniary *1132 benefit from the continued existence of the subject of insurance [has] a valid insurable interest.”
B a Props., Inc. v. Aetna Cas. & Sur. Co., 273 F. Supp. 2d 673 (D.V.I. 2003). “, Ala.Code § 27-14-4; Alaska Stat. § 21.42.”
In Re Coker, 216 B.R. 843 (Bankr. N.D. Ala. 1997). “Code § 27-14-4(a-c). 6 The debtor, Suter, as the insured, would receive the balance of the award, the court held.”
Hunter v. State Farm Fire & Cas. Co., 543 So. 2d 679 (Ala. 1989). “Alabama Code 1975, § 27-14-4, provides: “(a) No contract of insurance of property or of any interest in property, or arising from property, shall be enforceable as to the insurance except for the benefit of persons having an insurable interest in the things insured as at the…”
Ex parte Liberty Nat'l Life Ins. Co., 209 So. 3d 486 (Ala. 2016). “) The next section of the Insurance Code concerning “property insurance,” § 27-14-4(a), Ala.Code 1975, provides that “[n]o contract of insurance of property .”
In Re Barron, 325 B.R. 17 (Bankr. M.D. Ala. 2005). “Code § 27-14-4 (1975). An insured would not be damaged beyond the value of the property insured.”
Barton v. Liberty Nat'l Life Ins. Co., 209 So. 3d 479 (Ala. Civ. App. 2014). “For instance, Liberty National argues that Ala.Code 1975, § 27-14-4(a), also a part of the Insurance Code, which provides that “[n]o contract of insurance of property or of any interest in property, or arising from property, shall be enforceable as to the insurance except for…”
Missouri Middleton v. Rush, 764 So. 2d 1276 (Ala. Civ. App. 2000). “One of the two issues raised by Middleton on appeal is whether she, Middleton, had an “insurable interest” with respect to the property.”
Baldwin Mut. Ins. Co. v. Henderson, 580 So. 2d 574 (Ala. 1991). “Section 27-14-4, Alabama Code 1975, defines “insurable interest”: “(b) ‘insurable interest,’ as used in this section, means any actual, lawful and substantial economic interest in the safety or preservation of the subject of the insurance free from loss, destruction or pecuniary…”
Liberty Corp. Capital Ltd. v. Club Exclusive, Inc., 262 F. Supp. 3d 1288 (N.D. Ala. 2017). “Concerning the parameters of an insurable interest pertaining to property, Ala. Code § 27-14-4 provides: (a) No contract of insurance of property or of any interest in property, or arising from property, shall be enforceable as to the insurance except for the benefit of persons…”
Mt. Hebron Dist. Missionary Baptist Ass'n of Alabama, Inc. v. Landon Alexander, Sr. (11th Cir. 2020). “” Ala. Code § 27-14-4 (b). A fee title is not required, but the insured must suffer “economic disadvantage” upon the destruction of the property.”
— Ala. Code § 27-14-4(a) — 4 cases
In Re Suter, 181 B.R. 116 (Bankr. N.D. Ala. 1994). “Ala.Code 1975, § 27-14-4(a). An “insurable interest” is an “actual, lawful and substantial economic interest in the safety or preservation of the subject of the insurance free from loss, destruction or pecuniary damage or impairment.”
Ex parte Liberty Nat'l Life Ins. Co., 209 So. 3d 486 (Ala. 2016). “) The next section of the Insurance Code concerning “property insurance,” § 27-14-4(a), Ala.Code 1975, provides that “[n]o contract of insurance of property .”
Barton v. Liberty Nat'l Life Ins. Co., 209 So. 3d 479 (Ala. Civ. App. 2014). “For instance, Liberty National argues that Ala.Code 1975, § 27-14-4(a), also a part of the Insurance Code, which provides that “[n]o contract of insurance of property or of any interest in property, or arising from property, shall be enforceable as to the insurance except for…”
Missouri Middleton v. Rush, 764 So. 2d 1276 (Ala. Civ. App. 2000). “One of the two issues raised by Middleton on appeal is whether she, Middleton, had an “insurable interest” with respect to the property.”
— Ala. Code § 27-14-4(b) — 2 cases
In Re Suter, 181 B.R. 116 (Bankr. N.D. Ala. 1994). “Ala.Code 1975, § 27-14-4(a). An “insurable interest” is an “actual, lawful and substantial economic interest in the safety or preservation of the subject of the insurance free from loss, destruction or pecuniary damage or impairment.”
Missouri Middleton v. Rush, 764 So. 2d 1276 (Ala. Civ. App. 2000). “One of the two issues raised by Middleton on appeal is whether she, Middleton, had an “insurable interest” with respect to the property.”
— Ala. Code § 27-14-4(e) — 1 case
In Re Suter, 181 B.R. 116 (Bankr. N.D. Ala. 1994). “Ala.Code 1975, § 27-14-4(a). An “insurable interest” is an “actual, lawful and substantial economic interest in the safety or preservation of the subject of the insurance free from loss, destruction or pecuniary damage or impairment.”
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