American National Property and Casualty Co. issued an insurance policy to Robert Houston, insuring certain residential property and its contents against fire and other hazards. Twenty months later, Houston issued a quitclaim deed to the property to John and Judy Sykes, reserving a life estate for himself. Houston died two years later, but John continued to renew the American policy in Houston's name. When a fire substantially damaged the property, John filed a claim with the insurer on behalf if Houston, whom John said was out of town and unavailable. On learning that Houston had died seven years earlier, American refused to pay, claiming that it had no liability. Who will suffer the loss under these circumstances? Why? How might this loss have been avoided? Explain.