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State Farm Fire & Casualty Co. v. Dubrovsky

2018 IL App (1st) 170282 (Ill. App., 2018)

Words & Phrases

Fire Insurance: Mortgagee Interest

Trial Judge

Rita Novak and Sanjay Tailor

Appellate Judge



Standard mortgage clause in homeowners policy protects mortgagee even if there is no coverage for named insured.

Fact Summary

Plaintiff State Farm Fire & Casualty Company (State Farm) filed this action against defendants Seterus, Inc. (Seterus), Paul Dubrovsky, and Jeff Dubrovsky, seeking a declaration that it owed no coverage under a homeowner’s insurance policy issued to Jeff Dubrovsky for a certain property owned by Paul Dubrovsky, subject to a mortgage executed by Paul Dubrovsky, and currently serviced by Seterus as the mortgagee. The circuit court granted summary judgment in favor of Seterus, finding that the policy’s standard mortgage clause created a separate and distinct contract, under which Seterus was entitled to coverage. The circuit court also granted summary judgment to Seterus as to the distribution of the insurance proceeds. For the following reasons, we affirm.