American National Property and Casualty Co. issued an insurance policy to Robert Houston insuring a home and its contents against fire and other risks. Twenty months later, Houston granted a deed of conveyance to John and Judy Sykes, reserving a lifetime estate. American's policy was continually renewed by John, even after Houston's death. When a fire significantly damaged the property, John filed a claim with the insurance company on behalf of Houston, who, according to John, was out of town and unavailable. Upon learning that Houston was deceased, American refused to pay, claiming that he was not responsible. Who will suffer the loss in these circumstances? Because? How could this loss have been avoided?