A policy covering a supermarket and its contents at a described location against fire and other perils was for a period of three years to the grocery company that owned and operated the store. When the business was sold to another company before the end of the policy period, and operations were continued at the same location under a different name, the policy was promptly endorsed to substitute the new owner as the named insured.

The insurance company mailed a notice of nonrenewal, addressed to the previous owner rather than the new owner at the location specified in the policy, two months before the expiration of the policy. A fire caused substantial damage to the property approximately two months after the expiration date. In the course of legal action brought by the new owner, a return receipt for the notice signed by an officer of the new named insured was introduced in evidence. But he testified that he did not recall having opened or receiving such a letter. A trial court denied the insured's motion for summary judgment and granted a cross motion by the insurer dismissing the complaint.

The appeal court noted that the policy made provision for written notice of nonrenewal "to the Named Insured at the mailing address shown in the policy" at least 45 days before expiration. As it was addressed to the previous owner, it was not addressed to the "Named Insured."

Accordingly, the judgment of the trial court was reversed in favor of the new owner and against the insurance company.

(GOLA SUPERMARKET, INC. ET AL., Plaintiffs Appellants v. THE TRAVELERS INDEMNITY COMPANY, Defendant, Respondent. New York Supreme Court Appellate Division, First Department. May 2, 1989. 540 N.Y.S. 2d 436. CCH 1989-90 Fire and Casualty Cases, Paragraph 1968.)