Stonegate Insurance Co. v. Hongsermeier

Court properly granted summary judgment in favor of Defendant mortgagee and named loss payee in insurance policy issued by Plaintiff property insurer. A separate contractual relationship was established between parties, and mortgage clause states that denial of insured's claim does not necessarily apply to mortgagee's interest if mortgagee takes prescribed steps to secure its claim. No evidence presented that servicer of mortgage loan was aware owners were not occupying property prior to electrical fire which severly damaged premises. From policy language and evidence, it cannot be determined whether Defendant failed to comply with policy provision requiring mortgage servicer to give prompt notice to property insurer in event of loss to covered property. In absence of express statement that policy will be void as to owners and defendant mortgagee, it is reasonable for Defendant to believe that any wrongdoing by insured would not prevent its recovery.(GORDON and LAMPKIN, concurring.)