Opinion ID: 177138
Heading Depth: 3
Heading Rank: 1

Heading: Insurable Interest and Limit of Liability

Text: This policy provides indirect coverage to owner’s insurable interest in the insured property which has been pledged as security for a loan you have made to the owner. Regardless of the insurable interests of the owner or any other person or persons in the insured property, you are our sole insured under this policy. Even if more than one person has an insurable interest in the insured property, we shall not be liable for more than the amount of insurance you requested for each specific described location. 3 Case: 09-31048 Document: 00511262186 Page: 4 Date Filed: 10/13/2010 The third section, which appears in the “Lender-Placed Flood Insurance Deductible Buy-Back Coverage Endorsement” area of the policy, provides: A. CONDITIONS .... 1. Insurable Interest. Regardless of the insurable interest of Owner or any other person or persons in the insured property, you are our sole insured under this policy and any benefits payable under this Endorsement will be made directly to you, for the account of the owner. The Property sustained damage as a result of Hurricane Katrina and its aftermath. At the time, the Williamses’ mortgage principal balance was $142,617.80. Homecomings submitted a flood damage claim to Lloyd’s, and after an investigation by an independent adjuster, Lloyd’s issued payment to Homecomings in the amount of $57,244.20. The Williamses allegedly submitted insurance claims to Fidelity and Lloyd’s and were given loss estimates that were less than the true value of the damage to their home. The Williamses sued both Fidelity and Lloyd’s, seeking, inter alia, recovery from Lloyd’s for flood damage under the Policy.1 Lloyd’s filed a Rule 12(b)(1) motion to dismiss for lack of standing (the “Motion”). The Williamses failed to raise the “Temporary Housing Expense” section before the district court. The district court granted the Motion and dismissed Lloyd’s from the case. The Williamses timely appealed.