Juanita owns a home in Birmingham, Alabama. Her elderly grandmother lives in the house so Juanita can help take care of her. Juanita decides to purchase a fire insurance policy from Allstate to cover the house and a life insurance policy from Liberty Mutual to cover funeral and other expenses that will be incurred when her grandmother dies. Six months later, Juanita sells the house to Ben. Juanita and her grandmother move into a rental home. One month prior to the expiration of the fire insurance, Juanita's old house burns to the ground. Shortly after, her grandmother dies. The insurance companies state that they are not liable because Juanita did not have an insurable interest in the home or her grandmother. The premiums were returned to Juanita.

• Discuss the claims for all parties (Juanita, Allstate and Liberty).