Dover Glass Works Co. v. American Fire Insurance

Citations

• 15 Del. 32

Syllabus

<p>QUESTIONS RESERVED FROM THE SUPERIOR COURT OF NEW CASTLE CO..</p> <p>Insurance Defined.—An insurance in relation to property is a contract whereby the insurer becomes bound, for a definite consideration, to indemnify the insured against loss or damage to certain property named in the policy, by reason of certain perils to which it may be exposed.</p> <p>Insurance, Conditions Generally.—Conditions in a contract which induce caution on either side in respect to the subject matter cannot be held repugnant to public policy, because anything that stimulates diligence and good faith between contracting parties is highly promotive of the general as well as the individual good.</p> <p>Same.—An insurer may prescribe his own conditions, not being illegal or contrary to public policy, and their acceptance imposes upon the insured the duty of substantial compliance therewith, with the consequence that his neglecting so to do, unless waived or condoned, will relieve the insurer from liability, whether the loss be caused by such neglect or not.</p> <p>Insurance, Condition Against Incumbrance.—The condition prohibiting incumbrances and levies upon property insured against fire, without the consent of the insurer and declaring the policy to be void in case of a breach, is not only legal and comformable to public policy, but reasonable and proper.</p> <p>Same_Conditions against liens and incumbrances are strictissimi juris and cannot be held to apply to involuntary incumbrances such as tax liens or judgments procured in invitum, because the insured cannot control the action of the government or his creditors, either as to time or place, within the limits of the law.</p> <p>Same._According to the same rule of construction the violation of such conditions does not render the policy absolutely void, but voidable only at the election of the insurer. That being so, the right of avoidance may be waived, either by express agreement or necessary implication arising from the' acts of the