I bought a house in June 2007. The fire insurance policy on the building acquired by the previous owner is valid till March 2008. Can the insurance company decline to pay a small loss, which occurred in July 2007, on the pretext of change of ownership?As per the conditions of the fire insurance policy, the interest of the insured in the insured property must exist at the time of buying the policy and also at the time of occurrence of loss. Typically, the policy gets cancelled on the sale, or transfer of property. Therefore, in your case, since you were not the owner at the time of the inception of the policy, you would not be eligible to prefer claim under the fire insurance policy.
