Laws Applicable:
FACTS:
- Mariano R. Barretto, constructed a house for Placida A. Jose sold the house to Antonina Lampano for P6,000
- The house was destroyed by fire during which Lampano still owed Jose P2,000 as evidenced by a promissory note. Jose also owed Barretto P2,000 for the construction.
- After the completion of the house and before it was destroyed, Mariano R. Barretto took out an insurance policy upon it in his own name, with the consent of Placida A. Jose, for the sum of P4,000. After its destruction, he collected P3,600 from the insurance company, having paid in premiums the sum of P301.50
- Lampano filed a complaint against Barreto and Jose alleging that Jose in a verbal agreement told her that the policy will be delivered to her so she should collected P3,600 from each of them
- RTC: favored Jose ordering Barreto to pay him P1,298.50 and offsetting the P2,000
- Barreto alone appealed
ISSUE: W/N Barreto had insurable interest in the house and could insure it for his it for his own protection
HELD: YES. reversed and Barretto is absolved
- Where different persons have different interests in the same property, the insurance taken by one in his own right and in his own interest does not in any way insure to the benefit of another
- A contract of insurance made for the insurer's (insured) indemnity only, as where there is no agreement, express or implied, that it shall be for the benefit of a third person, does not attach to or run with the title to the insured property on a transfer thereof personal as between the insurer and the insured.
- Barretto had an insurable interest in the house. He construed the building, furnishing all the materials and supplies, and insured it after it had been completed
