Klemens v. Badger Mutual Insurance Co. of Milwaukee

Mr. and Mrs. Klemens owned a dwelling as joint tenants. They insured it in their joint names against loss by fire for $9,000 by a policy written by defendant Badger Mutual Insurance Company of Milwaukee. The policy contained a provision that the company is not liable for loss caused by neglect of the insured to save and preserve the property at and after a loss.

Then Mr. and Mrs. Klemens mortgaged the property for $6,500 to Shawano Savings & Loan Association. The said insurance policy contained a “loss payable” clause protecting the mortgagee.

After the policy and the mortgage had been executed…