Assignment Of Insurance Not Requiredshoke2013
In a Hurricane Katrina-related case, the federal 7th Circuit held that the fact the insured sold the property before the building was repaired without an assignment did not defeat coverage.
The Seventh Circuit Court of Appeals found that an owner of an apartment building damaged in Hurricane Katrina had standing to sue, despite having sold the property before the repairs were finished. The policy provided that replacement costs would not be reimbursed until the property was repaired. The court found that the policy did not require that the policyholder finish the repairs itself. The appellate court rejected the insurer’s argument that the policyholder had no direct interest in the insurance proceeds due to the policyholder’s failure to assign its interest in the claim to the buyer. Edgewood Manor Apartment Homes, LLC v. RSUI Indemn. Co., Nos.12-1480 and 12-1508, U.S. Court of Appeals, Seventh Circuit.