Court affirms summary judgment for GMSR client, ruling that insured had no benefits to assign to home buyer for damage occurring after insured sold property

Edwards v. Fire Insurance Exchange (2008) 2008 Cal.App. Unpub. LEXIS 2428 (California Fourth District Court of Appeal, Division One) [unpublished]. Plaintiff purchased a house. The seller remained on the mortgage, however, and plaintiff buyer still owed a portion of the purchase price. Several days later, the house burned down. Not having insured the property, plaintiff obtained an assignment of policy benefits from the seller. The insurer, GMSR’s client, denied coverage and plaintiff sued. Agreeing with GMSR’s arguments, the Court of Appeal held that the seller had no policy benefits to assign to plaintiff because she had no insurable property interest at the time of the fire. The Court affirmed the summary judgment for the insurer.