What happens to coverage if the insured loses their interest in the property?

When the insured loses their interest in the property, it can significantly impact the coverage provided by wet marine and transportation insurance. This type of insurance is specifically tied to the ownership and interest in property. If the insured no longer has an insurable interest—meaning they no longer stand to lose financially should something happen to the property—the policy typically becomes void concerning that particular asset.

This aligns with the principle of insurable interest, a fundamental concept in insurance law, which requires that the insured has a legitimate stake in the property's value. When the ownership changes or is relinquished, the original policy no longer applies because the risk of loss has effectively transferred to another party who presumably has their own coverage arrangements. Thus, the original insured would not be able to claim coverage for that property anymore under the existing policy.

Other choices may pertain to related scenarios but do not accurately reflect the primary consequence of losing interest: that the coverage is rendered ineffective for the former insured.