Home Savings of America v. Continental Insurance

Opinion

ORTEGA, J.

In this appeal, we must decide whether a loss payable clause, patterned after the ISO (Insurance Services Office, Inc.) Standard Mortgagee Clause, is a standard loss payable clause. We also must determine various coverage and exclusion issues concerning a mortgagee’s claim under an all-risk homeowners policy. While the policy was in force, the named insured transferred title and moved out of the home. The home was then demolished for redevelopment purposes. Upon the insured’s default on the note, the mortgagee foreclosed against the deed of trust. Due to the impairment of…