Kelly v. Iowa Valley Mutual Insurance Ass'n

McGiverin, justice.

This appeal arises from a factual situation unique to the body of insurance law in Iowa. Defendant insurer, Iowa Valley Mutual Insurance Association, appeals from a judgment for plaintiff Michael L. Kelly for fire damage to a house plaintiff was leasing with an exclusive option to purchase the realty. Two issues are presented for review: 1) whether plaintiff lessee had an insurable interest in the leased house, which he was improving; and 2) if plaintiff had an insurable interest, whether it extended to the full value of the fire loss. We agree with the trial court that…