In which scenario is it necessary for the Insurer to give consent for a Change of Interest?

It is necessary for the insurer to give consent for a change of interest primarily when an insured sells their house and the new owner wishes to continue the policy. In this situation, the ownership of the property has changed, and in insurance terminology, this is deemed a change of interest. The insurer must evaluate the new owner’s risk profile, which may be different from that of the previous owner. This is critical because the terms of the policy might not automatically apply to the new owner without the insurer's approval. Therefore, consent is needed to ensure that the new owner meets the insurer's criteria for coverage and to properly address any underwriting considerations.

In contrast, updating contact information does not significantly change the risk or the interests covered within the policy, so insurer consent is not required. Increasing coverage generally involves the insured discussing their needs with the insurer, but it doesn’t involve a change of interest in the property itself. When the insurer decides to change policy terms, this is a matter of the insurer’s discretion and internal policy management and does not involve the insured requesting consent for a change of interest.