If multiple people have an insurable interest in property covered under a dwelling policy, what is the insurer's liability?

The insurer's liability in a situation where multiple people have an insurable interest in property under a dwelling policy is primarily focused on the interest of the primary insured. This is because insurance contracts are designed to cover the loss based on the insurable interest held by the party named in the policy.

In typical homeowner or dwelling insurance scenarios, the policy specifically assigns coverage to the primary insured, reflecting their investment in the property. Although other parties may have an insurable interest (for example, a co-owner or a family member might also have a stake in the property), the policy will only indemnify the primary named insured for the loss sustained. If a loss occurs, the insurer will compensate the primary insured based on their interest without extending liability to other parties involved, unless they are also named on the policy.

This aspect of insurance reinforces the principle that coverage only extends to the entity that is specifically recognized within the policy document. Thus, clarifying that while multiple parties may share an interest, the insurer’s responsibility is limited to the primary insured's interest.