Draper v. Delaware State Grange Mutual Fire Insurance

Citations

• 28 Del. 143
• 5 Boyce 143
• 91 A. 206
• 1914 Del. LEXIS 20

Syllabus

<p>1. Insurance—Actions—Burden of Proof.</p> <p>For a party to recover on a contract of insurance, the existence of a valid contract and the occasion that fixes liability thereunder must be proved.</p> <p>2. Insurance—Nature of “Contract of Insurance”.</p> <p>A “contract of insurance” against loss or damage to property is a contract of indemnity, and is an undertaking on the part of the insurer, based upon sufficient consideration, to pay the insured a certain sum of money upon the happening of a certain contingency.</p> <p>3. Insurance—Liability of Insurer—Necessity of Loss.</p> <p>A fire insurance contract is essentially a personal contract, and is not a contract to insure the property against fire, but one to insure the owner of the property against loss by fire; and hence a destruction of the property by fire does not.render the insurer liable, unless insured has thereby sustained a loss.</p> <p>4. Insurance—Actions on Policies—Pleading—Insurable Interest. In an action on a fire insurance policy, plaintiff must allege and prove</p> <p>an insurable interest in the property existing at the inception of the policy, or subsisting during the risk and existing at the time of the loss; and hence ' a declaration failing to allege such interest at the date of the contract and at the time of the loss was demurrable.</p> <p>5. Insurance—Validity of Contract—Necessity of Insurable Interest.</p> <p>An insurance policy against loss of property in which the insured has no interest amounts to a wager, and is void, as contrary to public policy.</p>