Insurance – Recovery – Land Contract Purchaser Allowed Recovery on Both Vendee’s and Vendor’s Policies in Excess of Loss

An owner of realty entered into a contract to sell the land to the plaintiff. The vendor then took out fire insurance on his interest in the amount of $6,000 and the plaintiff obtained a policy covering his interest in the sum of $12,000, with a “three-fourths value” clause. Before performance of the contract and transfer of title, a fire occurred which caused $12,000 damage to the property. After the plaintiff paid the full contract price and took title to the property, he demanded and received an assignment of the claim under the vendor’s policy. Plaintiff then brought suit on both insurance policies and won judgments of $6,000 on the claim assigned to him by the vendor and $9,000 on his own policy. On appeal, held, affirmed. Under Pennsylvania law both vendor and purchaser have insurable interests to the full value of the property, and since the insurer’s liability is fixed at the time of the loss, the fact that the vendor was later indemnified by performance of the contract cannot serve to release his insurance company. Vogel v. Northern Assurance Co., (3d Cir. 1955) 219 F. (2d) 409.