Wilson v. Fireman's Insurance

We are asked to decide whether an insurer is liable to an insured land contract vendor for the full amount under a fire insurance policy or is only liable to the extent of the vendor’s interest remaining under the land contract. The trial court found that the insurer was liable for the full amount, and we agree.

The plaintiffs, Mr. and Mrs. Wilson, were purchasing a house from Mr. and Mrs. York for $4,500, under a land contract of February 28, 1966. Under the contract, the plaintiffs were required to provide fire insurance for the sellers’ benefit, with proceeds to be applied to the amount due…