Stenzel v. Pennsylvania Fire Ins.

Citations

• 110 La. 1019
• 35 So. 271
• 1903 La. LEXIS 744

Syllabus

<p>INSURANCE — STANPARD POLICY — CONDITIONS —CONSTRUCTION — FORECLOSURE PROCEEDINGS — LOSS—VALUE OF PROPERTY.</p> <p>1. The fire insurance contract known as the “Standard Policy” contains the following clause: “This policy shall he void if, with the knowledge of the insured, foreclosure proceedings be commenced or notice given of sale of any property covered by this policy by virtue of any mortgage or trust deed; or if any change, other than by the death of the insured, takes place in the interest, title or possession of the subject of insurance, whether by legal process or judgment, or by voluntary act of the insured, or otherwise.” Interpreting this clause, held:</p> <p>(a) The word “interest,” as here used, has the same meaning as in the phrase “right, title and interest.” It means a proprietary or insurable interest, not a mere sentimental interest. So long as the insured continues to be the sole and exclusive owner and possessor of the property insured, the condition is not violated.</p> <p>(b) The stipulation, “if notice he given of sale by virtue of any mortgage,” has, reference to extrajudicial enforcement of a mortgage by means of a notice given to the mortgagor, and is inoperative in this state, since that mode of enforcing mortgages is not known to our law.</p> <p>(c) By “commencement of foreclosure proceedings” is meant the institution of judicial proceedings for the enforcement of the mortgage; and waivers of legal delays, and other waivers of a nature to greatly facilitate ■ and expedite the judicial proceedings, if ever begun, do not constitute of themselves the commencement of foreclosure proceedings.</p> <p>2. In determining the value of the insured property, in adjusting the loss under a fire insurance policy, market value is not necessarily to govern, but the aim must be to arrive as near as possible at the value of the insured property as it stood on the day of the fire, taking into consideration what would be the cost of rebuilding, and allowing