Insurance Law Commons^™

Insurance-Construction-Mortgagee's Interest Under An Appraisal Clause, Lenamyra Saulson

Michigan Law Review

Plaintiff-mortgagee sued defendant insurance company to recover the amount allegedly due plaintiff under a fire insurance policy covering a mortgaged building. Plaintiff based its right to recovery on a New York standard mortgagee clause incorporated into a New York standard fire insurance policy. Before the suit was instituted, defendant had tendered payment to plaintiff in accordance with the findings of an appraisal of loss conducted by the mortgagor and defendant, which fully complied with the terms of the policy. This tender was rejected by plaintiff, which had no notice of, and did not participate in, the appraisal. Plaintiff contended it …