Does a mortgagor’s equity of redemption constitute an insurable interest in the mortgaged property?
Saskatchewan, Canada
The following excerpt is from Walton v. General Accident Assurance Co. of Canada, 1999 CanLII 12460 (SK QB):
Clearly, a mortgagor’s equity of redemption constitutes an insurable interest in the mortgaged property. This has been recognized for more than two centuries. A judgment in the case of Glover v. Black (1763), 97 E.R. 891, states at 893 that “. . . a property in the thing mortgaged is vested in the mortgagee, and he may insure it”. The defendant contends, however, that the plaintiffs’ interest was extinguished by the final foreclosure order. For my part, I see it otherwise.
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