(Solved): When Chuck and Dot Baker sold their house to the Berkshire family on April 1, the Bakers did not bot ...

When Chuck and Dot Baker sold their house to the Berkshire family on April 1, the Bakers did not bother to cancel their homeowners policy that would expire anyway on April 30. April 15, when the house burned to the ground, the Berkshires, who paid cash for the house and did not have a mortgage, had no insurance of their own. Should the Bakers' insurer pay for this loss? a. No; the Bakers had no insurable interest in the house at the time of the loss. b. Yes; the omnibus clause in a homeowners policy extends coverage to any party with an insurable interest in the property described in the declarations. c. Yes; the Bakers had an insurable interest in the house when they bought the insurance, and the policy is still in force. d. Yes; the Bakers paid a premium for coverage until April 30.