Jim and Sara were married and owned a home together. When they received the renewal bill for their homeowner’s insurance, they decided to check out other insurance companies to see if they could find lower cost coverage. They found less expensive coverage at Express Insurance, and purchased a policy to cover the home. Unknown to Jim and Sara, the renewal premium for the original policy was automatically taken out of their bank account on the renewal date pursuant to an authorization they had signed when the original policy was purchased. On July 15 the house was totally destroyed by a tornado. When the house was destroyed, the house was covered for $100,000 by both companies. (the value of the house was $100,000).

1c. Which company, if any, will pay the claim and why?

2. Would the amount paid, if any, be different if the home was worth $200,000?