State Farm Fire & Casualty Company v. Dubrovsky

Plaintiff insurer filed declaratory judgment action as to homeowner's insurance policy. Court properly granted summary judgment for mortgagee, finding that policy's standard mortgage clause created a separate and distinct contract, under which mortgagee was entitled to coverage. The fact that homeowner is not the mortgagor doses not provide a basis for insurer to deny coverage to mortgagee. Standard mortgage clause protects mortgagee even if there is no coverage for named insured and policy is void as to the named insured, including in situations where conditions precedent to coverage under policy have not been met by named insured. (PIERCE and SIMON, concurring.)