An interesting case has come from the Texas Court of Appeals. The amount at issue, $4,410.69, belies its significance.
In Alvarado v. Lexington Insurance Co.[1], the court thoroughly examined, with extensive citations, the issue of whether a homeowner, subject to "force placed" insurance, has any rights in the policy obtained by his lender.
The majority concluded that the terms of the policy established that the homeowner was an intended beneficiary and could claim under the policy. The dissent strongly disagreed.
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