The Supreme Court of Canada has decided that an insurance company cannot void coverage afforded to a mortgagee if the mortgagee fails to notify the insurer that a property has been vacated by the mortgagor. In State Farm Fire and Casualty Co., the insurer denied coverage to mortgagees because they did not advise the insurer that the owners of the insured house destroyed by fire had vacated the property after the mortgagees commenced power of sale proceedings.

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