Employers’ Mutual Casualty Insurance Company (EMC) sued, among others, Balboa Insurance Company (Balboa) seeking a declaration that Balboa’s policies constituted “other insurance” and Balboa should contribute to payments for the fire loss. The Court held that the Mortgage Protection Payment and Home Mortgage Protection Plan Insurance Policies issued by Balboa do not constitute “other insurance” because the Balboa policies insure a risk different from the risk insured under EMC’s homeowner’s policy. The Balboa policies insure the homeowner’s interest in making mortgage payments and other expenses related to a catastrophic property loss while the EMC policy is a standard “all risk” homeowners policy. The decision is significant because it is the first occasion a court in the country has addressed whether these kinds of policies constitute other insurance.
For more information, contact lead counsel Kelly D. Simpkins.