Sheckler v. Auto-Owners Insurance Co.

Rental apartment sustained severe fire damage after tenant turned on the stove and stove burst into flames. Landlord had fire insurance policy on apartment, and lease explicitly states that landlord shall maintain fire and other hazard insurance. Reasonable expectations of parties to the lease were that the landlord would look to the policy for fire damage to the premises. Policy declarations listed landlord and his wife as the only named insureds. An insurer's duty to defend does extend to the tenants of the insured property against a 3rd-party negligence contribution claim when tenants are not identified as persons insured under the policy. (HOLDRIDGE, specially concurring; McDADE, dissenting.)