Noland v. Farmers Ins. Co., Inc.

Tom Glaze, Justice.

On or about January 29, 1989, Diarl Noland and his wife, Debra Noland, purchased a homeowner’s policy from appellee Farmers Insurance Co., Inc. The policy covered the Nolands’ dwelling for a twelve-month period ending January 29, 1990. On the night of December 31, 1989, a fire destroyed the Noland house and its contents. As a result of the fire loss, Farmers paid the mortgagee, First Commercial Mortgage Company, the sum of $46,011.99 and under the terms of the policy, advanced the Nolands $2,000 for living expenses. Later, Farmers refused to make further payments under the…