Who is intilted to the insurance proceeds

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Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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UPDATED: Dec 8, 2011

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Insurance Question from Marion, IL

Asked on 12/08/2011

Who is intilted to the insurance proceeds My grandmother was selling her house contract for deed to her daughter the house was not fully paid for yet buy my aunt and over half of the balance was still owed. There contract was written up by a attorney and they both signed it! In the contract it states the the buyer being my aunt has to maintain insurance on the property insured to its fullest insurable falue to protect her own intrest in the home she had none! Only my grandma did! Unfortantly the house was destroyed by fire just two months ago and my aunt is fighting for my grandmother insurance money! Who gets it!

Answer given on December 10, 2011

Homeowner insurance is to written in the name of the titled owner, which is usually whoever is on the loan and title. If your aunt had a contract to purchase the home and the contract indicated she was to maintain insurance on the home, then the policy should have been in your aunt’s name and your grandmother showing as an additional insured. If your aunt was making payments on the home then she would have an insurable interest in the home, so an insurance policy should have been valid.You need to determine in who’s name the policy was written. The insurance agent or adjuster should be able to answer this question. The check for the fire damage would be made payable to that person. If there is a loan, then the lender would also be named on the check. If the policy was in your grandmother’s name, then she is the one who would be paid. If she refuses to give any money to your aunt then they will need to work this out legally through the written contract they had.

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