Garrity v. Rural Mutual Insurance

The question is: When an insured’s loss exceeds the amount recoverable under a standard fire insurance policy written in conformity with section 203.01, Wis. Stats. 1969, 1 what are the respective rights of the insured and the subrogated insurer to the damages recovered from the tort-feasor who caused the loss?

We hold the insured is entitled to be made whole before the insurer may share in the amount recoverable from the tort-feasor. We reverse the trial court which held the insurer has a priority to the amount recoverable from a tort-feasor once the policy limits are paid to the insured.

The…