In a joint-owned property, there can be more than one insured in an insurance policy. When one insured causes a loss through wrongdoing, the other insureds are considered “innocent insureds.”

When the innocent insureds submit a claim to the insurer for the loss, an issue arises as to whether the claim should be paid because it would benefit the insured who committed the wrongdoing.

For example: A husband and wife obtain a homeowner’s policy on their jointly owned home. Their relationship ends in an unfriendly divorce. The wife burns down the home out of spite. The insurance dilemma is:

• If the husband, as the innocent insured claims the insurance money, the wife, as the wrongdoer, benefits because she partly owns the home.
• If the insurer denies coverage, the innocent husband is punished for wife’s wrongdoing.

As per the modern insurance interpretation, the courts are allowing an innocent insured to claim insurance money so that he should not be penalized for another insured’s wrongdoing.