FACTS
Rizal Surety & Insurance issued Fire Insurance Policy on buildings in favor of Transworld for 1.5M. The same pieces of property were also insured with New India Assurance. The policy covers all that is “contained and/or stored in the premises occupied or forming part of the building situated in the Compound”.
A fire broke out in the compound of Transworld which partly destroyed its four-span building while completely damaged its 2 story annex building. Private respondent brought an action for collection of sum of money and damages, against Rizal Insurance and New India.