Video 21 - The Homeowners Policy

For Subscribers Only

Many people believe a homeowners policy insures the property. It does not. A homeowners policy only insures specific people who qualify as insureds against certain risks of loss to the property. A person named as an insured who has no insurable interest cannot recover for a loss. A person with an insurable interest cannot recover unless named as an insured or who is an insured by the terms, conditions and definitions of a policy.

In Vaughn v. Stillwater Property & Casualty Insurance Co., Superior Court of Delaware, Not Reported in A.3d, 2017 WL 2709750 (June 23, 2017) the Superior Court of Delaware was faced with a claim from a person with an insurable interest in property who was not named as an insured nor did he fit within the definition “insured” but asked to be provided coverage because it was only fair that the insurer be prohibited from denying him indemnity.