Property insurance claim
The Effect of Sale of a Commercial Property on a Pending Insurance Claim
What happens to a property insurance claim when a commercial property is sold before the claim is settled?
There is nothing about the sale that provides an insurer with the opportunity to sidestep its payment obligations. Policyholders should insist that insurers adhere to their obligations.
"The "anti-assignment" clause in a typical policy means only that the policy itself cannot be assigned without consent, but a post-loss claim is assignable notwithstanding the clause."
"In short. . .the sale of a damaged property does not create a windfall opening for the insurer to escape from some or all of its insurance obligations, no matter how rights to insurance proceeds are negotiated and allocated between the seller and purchaser."