Idaho Title Company v. American States

This is an appeal from a judgment in favor of plaintiff and third party defendant arising from a case involving a fire insurance contract, a fire loss and the question of who should ultimately bear the financial burden of the loss. We affirm the decision of the district court in part and reverse in part. In October 1970 the residence in question was owned by Realty West, Inc. and First Federal Savings & Loan Association of Boise held a mortgage on the property. In that month American States Insurance Company, the defendant and third-party plaintiff and appellant in this action issued a fire insurance policy in the amount of $20,000, naming Realty West as the owner and First Federal as mortgagee as named insureds. That policy was issued by Palmer Insurance Agency of Boise, a local agent of American States. Prior to the events concerned in this case, that policy of insurance was in the possession of First Federal.