No Coverage for Homeowner Named as Borrower in Policy but Not as Insured

    The magistrate judge recommended that the homeowner's complaint seeking coverage for damage caused by Hurricanes Laura and Delta be denied because the homeowner was only named as the borrower under the policy. LeDay v. Integon Nat'l Ins. Co., 2024 U,S. Dist. LEXIS 87369 (W.D. La. April 15, 2024). 

    When the homeowner sought coverage for hurricane damage, it was denied. The homeowner then sued and Integon moved to dismiss. Integon argued it did not issue a policy to the homeowner, but the policy was issued to Midland Mortgage. The pro se homeowner did not respond to the motion. 

    The homeowner's complaint alleged that the policy "constituted a contract between Plaintiff and Defendant." But the policy attached to the complaint only named Midland Mortgage as the named insured. The homeowner was only listed as the borrower by the policy. 

    In cases finding the borrower was an insued, courts found that the policy constituted a clear intent to benefit the borrower if the loss amount exceeded the mortgage balance. Here, the homeowner had neither alleged in the complaint nor argued in response to Integon's motion the existence of a stipulation for third party benefit. Thus, the homeowner had not met the burden to prove she was a third-party beneficiary to the policy. Therefore, the homeowner failed to state a claim for relief.