Subject: Insurance Case no: Topic: Fire and Other Types of Insurance; Fire; Alteration resulting in use or condition;

alteration resulting in rescission Date: July 16, 1986 Ponente: CRUZ, J. Facts: A fire occurred in the building of Phil Union Realty Development Corp (PURDC) and it sued for recovery of damages from the Development Insurance on the basis of an insurance contract between them. The petitioner allegedly failed to answer on time and was declared in default by TC from which a judgment was rendered allowing full recovery of the claim in the amount of P508,867.00. The building was insured at P2,500,000.00. Development moved to lift the order of default, invoking excusable neglect, and to vacate the judgment by default. Issue: WON the policy allows full recovery of the claim. Held: YES. Doctrine: OPEN POLICY OPEN POLICY value of thing insured is not agreed upon, but left to be ascertained in case of loss. (Sec. 60) The actual loss, as determined (subject to appraisal), will represent the total indemnity due the insured from the insurer except only that the total indemnity shall not exceed the face value of the policy.