What must a new owner demonstrate to obtain fire insurance on a property they purchased?

To obtain fire insurance on a property they purchased, a new owner must demonstrate insurable interest in the property. Insurable interest means that the individual or entity has a legitimate stake in the property, which means they would suffer a financial loss if the property were damaged or destroyed. This requirement is critical in the insurance industry, as it ensures that insurance contracts are not used for speculative purposes and that the insured party has a genuine interest in protecting the asset.

Insurable interest is typically established through ownership of the property, but it can also be demonstrated in cases where a party has a financial commitment to the property, such as in leasing situations or through other legal means. By proving insurable interest, the new owner validates their right to purchase insurance coverage, ensuring the insurer can assess the risk associated with the property accurately.

The other options relate to aspects that are not typically required for obtaining fire insurance. For instance, proof of historical ownership may not be necessary if the new owner is the current titleholder. A written contract with the previous owner isn't needed for the insurance process, nor is evidence of previous insurance required, especially if the new owner has never previously insured the property in question.