Avrit and Schuring entered an agreement to purchase a certain property. Each paid $1,000 as a down payment. They were later to pay an additional $25,000. The seller of the property was to maintain insurance until the deal was finalized. Avrit and Schuring also obtained an insurance policy on the property.
Before the deal was finalized, fire damaged the property. Avrit and Schuring attempted to collect on their policy, but the insurance company claimed that Avrit and Schuring had no insurable interest at the time of the fire.
Did Avrit and Schuring have an insurable interest between the time of the down payment and the time the deal was finalized? Explain.
Avrit v. Forest Industries Insurance Exchange, 696 P.2d 583 (OR).