A. Joe owned a home in Rose City. On July 1, 2008, he renewed his homeowner’s policy on the home and paid the premium for a year. The home was worth $100,000 and he insured it for that amount. On August 15, 2008, he was promoted at work, but was required to move to Junction City to take the job. He placed his home up for sale with local real estate agent. On September 1 the house was sold for $100,000 to Jon. The closing on the home sale was conducted on September 15, 2008, at which time Joe was paid in full for the home. Jon moved in later that day. On October 4, 2008 the home was completely destroyed by fire. After the fire Jon realized he had failed to insure the house. When Jon told Joe of his situation, Joe realized he had failed to cancel his own coverage on the home. To help Jon out, Joe filed a claim on his policy for the loss, with the intention of giving the money from the proceeds of the claim to Jon.

B. Same situation as above except Joe financed the home sale to Jon. Jon paid Joe $50,000 down and was scheduled to make monthly payments for the remainder (contract for deed). The contract contained a clause that required Jon to insure the home and instruct the insurance company to name Joe as loss payee on the policy. As in the above case, Jon failed to insure the house. The house completely burned on October 4, 2008.

Would Joe be able to collect on his policy, what amount if any, and why?