Sadler v. Home Savings of America

CRIST, Judge.

Richard and Christine Sadler (homeowners) appeal from the trial court order dismissing their cause of action with prejudice. We affirm in part, and reverse and remand in part.

Homeowners’ residential property was encumbered by a deed of trust to respondent Home Savings of America (bank). By the terms of that mortgage homeowners insured the residence against casualty loss. The insurer was respondent State Farm Fire and Casualty Company (insurer) and the policy named bank as loss payee.

On January 13, 1984, the home was substantially destroyed by fire. Insurer refused to pay on…