American Fire & Cas. Co., Inc. v. Archie

Yvonne Archie's home was destroyed by fire in the early morning hours of June 19, 1978. Neither Mrs. Archie nor her two children were at home when the incident occurred. Testimony at trial indicated that neighbors were awakened by a "loud boom," observed flames coming out the windows and notified the fire department. The cause of the fire was not determined. The home was insured against fire loss by American Fire Casualty, appellant herein. The Farmer's Home Administration held a first mortgage on the property.

The insurance policy included the following pertinent coverage limitations:

Dwelling…