Columbia Insurance Co. v. Artale

The complainant insured the Artales against loss by fire to the extent of $11,000. Loss, under a standard mortgagee clause, was made payable to the Home Building and Loan Association, the holder of a $7,000 mortgage (see form in Selray Investment Co. v. Massimino, 110 N.J. Eq. 300). There was a fire and an explosion, and, believing them not accidental, the complainant refused to pay any loss to the Artales. Being bound by the standard mortgagee clause in the policy to make good the loss to the mortgagee, regardless of liability to the Artales, the complainant paid the building and loan…