Ideal Financial Services, Inc. v. Zichelle

The question presented is whether, under a standard mortgage clause in a Massachusetts fire insurance policy, a mortgagee’s coverage under the policy will survive a transfer of the full title to the mortgagee at foreclosure. Two months after foreclosure and purchase of a residential property by the plaintiff, Ideal Financial Services (Ideal), on which Ideal had held a first mortgage, the house was badly damaged by fire. Ideal was denied coverage by the defendant insurer, Hingham Mutual Fire Insurance Company (Hingham), under a fire insurance policy issued to the former mortgagor-owner that…