In Error , a husband intentionally burned down the couple's home, and the wife, an innocent co-insured, claimed coverage under a homeowner's policy. Neglect , meaning neglect of the insured to use all reasonable means to save and preserve Property at and after the time of loss, or when the property is endangered by a Peril Insured Against. Concealment or Fraud . We do not provide coverage for any insured who has intentionally concealed or misrepresented any material fact or circumstance relating to this insurance. The trial judge, after a nonjury trial, ruled for the wife, holding the exclusions inapplicable.
Some jurisdictions focus upon the insured's property interest.
Others focus upon the insured's obligations under the insurance policy. The rationale that most appeals to our sense of reason and fairness, and the rationale we adopt today, is that which focuses upon the responsibility for the fraudulent act. In the absence of an applicable policy exclusion, the Error innocent co-insured recovered because she was not personally responsible for the arson. See id. at 1081. Ms. Crook would read the public policy in Error as allowing an innocent co-insured to recover despite a directly applicable policy exclusion.