Hammond

As a lessor’s insurer, plaintiff Fire Insurance Exchange (FIE) seeks reversal of a summary judgment denying its subrogation claim against the lessees, defendants Reginald Hammond and Sevilla Hammond, for fire damages it attributes to their negligence or the negligence of their guests or invitees. The trial court relied on Parsons Manufacturing Corp. v. Superior Court (1984) 156 Cal.App.3d 1151 [ 203 Cal.Rptr. 419 ] {Parsons), in which subrogation was denied on the ground the lessor’s fire policy was for the mutual benefit of the lessor and lessee. We reverse the judgment, concluding the rental agreement here expresses no intent of the parties to insure the Hammonds under the lessor’s policy or to exculpate them from negligence liability.

Background

In October 1995 the Hammonds rented a home from Henry Dawson. The rental agreement did not expressly require Dawson or the Hammonds to maintain fire insurance and they did not discuss the matter. Dawson obtained a fire policy from FIE. Additionally, the Hammonds obtained a renters policy covering fire damages to the premises caused by their negligence. In December 1995 the home was damaged by fire and FIE was required to pay…