Davis v. Phoenix Insurance

Citations

• 111 Cal. 409
• 43 P. 1115
• 1896 Cal. LEXIS 597

Syllabus

<p>Fire Insurance —Ownership of Insured Premises—Condition in Policy—Application Made Part of Policy—Waiver of Condition.— Where a policy of fire insurance is based upon the condition that the insured is the owner in fee simple, hut contains a provision that the application is to be considered a part of the policy, and such application shows clearly that the insured is not the owner in fee simple, the insurer by accepting the risk upon the application waives the condition in the policy as to the title, and cannot set up the want of such fee-simple title to defeat an action on the policy.</p> <p>Id.—Insurable Interest—Equitable Right.—It is not necessary that the insured person have a legal interest in the property insured; hut an equitable interest is sufficient, and it is not requisite that there be a valid equitable title, provided the insured has possession and use, and has a direct pecuniary interest in the preservation of the property, and will suffer a pecuniary loss as an immediate and proximate result of its destruction.</p> <p>Id.—Contract of Sale—Option to Purchase—Extent of Insurable Interest.—One who is in the full possession and enjoyment of property under a contract of sale of the premises by the owner, upon which he has paid part of the purchase price, with an option to complete the purchase, upon the completion of which he would he entitled to a conveyance of the legal title, has an insurable interest in the property; hut his insurable interest is limited to the amount advanced by him upon the option, at the date of the insurance..</p>