What condition ensures that no one other than the policyholder who has custody of the insured property will benefit from the policy?

The "no benefit to bailee" condition is essential because it stipulates that only the named policyholder is entitled to any benefits from the policy, particularly when a bailee holds the insured property. This is crucial in insurance as it prevents the bailee, who may be temporarily in possession of the property, from claiming compensation for a loss that occurs while the property is in their custody. This condition protects the interests of the policyholder, ensuring that the financial responsibility and benefits from the insurance coverage remain solely with them.

Other options focus on different insurance principles. The co-insurance requirement pertains to ensuring that the property is insured to a certain percentage of its value, while the policyholder responsibility clause may detail the obligations of the policyholder toward the protection of the insured property. The transfer of risk clause typically addresses the conditions under which risk may be transferred to another party, which does not specifically relate to who benefits from the policy. Each of these elements plays an important role in the broader context of insurance coverage, but they do not specifically address the restriction on benefits pertaining solely to the policyholder.