Loss Payment to Partners

February 23, 2011

I have a client who is named on the deed but not on the insurance policy. His partner is named on the deed and the insurance policy. The insurance company states that it owes only 50 percent of the damages because both partners are not named on the insurance policy. The insurer offers little rationale beyond that. This does not seem logical to me. There is no other insurance policy in force on this property. Your thoughts ?

New York Subscriber

It should not matter that both partners are not named on the insurance policy. If the property is covered by the policy, the full amount of the loss—within policy limits, exclusions, and limitations—should be paid. It will go only to the partner who is named on the policy, but that is between the partners to deal with.

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