21st Mortgage v. Aegis Ins. Security CA2/5

FACTS AND PROCEDURAL HISTORY

The majority of the facts are undisputed. In 2017, Inocente and Ivonne Salinas owned a manufactured home in Sylmar and obtained a loan from 21st Mortgage secured by the home. In the course of underwriting the loan, 21st Mortgage obtained an appraisal conservatively valuing the home at $123,250. Aegis issued a $125,000 insurance policy on the home to the Salinases with a coverage period of May 25, 2017, through May 25, 2018. 21st Mortgage was identified as the lienholder on the policy. As relevant here, the policy provided that in the event of a covered loss, if the manufactured home was not repaired or replaced, Aegis would pay the lowest of (1) the actual cash value of the manufactured home before the loss, (2) the difference between the actual cash value immediately before the loss and the actual cash value immediately after the loss, (3) the cost to repair the manufactured home, (4) the cost to replace the manufactured home with a manufactured home of like value, or (5) the amount of insurance shown on the Declarations Page. The manufactured home was completely destroyed in the Creek Fire on December 5, 2017. On the same day, the governor of…