The Seventh Circuit recently held that an insured may recover replacement cost proceeds from its insurer, even after the insured has sold the damaged property. Edgewood Manor Apt. Homes, LLC, et al. v. RSUI Indemnity Company, 733 F.3d 761 (7th Cir. 2013) (Nos. 12-1480, 12-1508). The policy at issue provided coverage for “actual cash value” proceeds, as well as “replacement costs” proceeds. Following damage to the insured’s apartment complex caused by Hurricane Katrina, a dispute arose between the insured and its insurer as to the amount of the replacement cost proceeds. The insured later sold the complex to one of its limited partners, Edgewood Manor, and asserted that along with the sale it assigned the ongoing claim against the insurer for the replacement cost proceeds. The insurer objected to the alleged assignment based on the policy’s anti-assignment provision, and the insured and buyer filed suit in the Eastern District of Wisconsin. The district court ruled that neither the insured, nor the buyer, had standing and dismissed the suit. The Seventh Circuit affirmed in part and reversed in part. As to the buyer, the Court held that no assignment of the policy’s proceeds had occurred and therefore the buyer lacked standing and had been properly dismissed. As to the insured, the Court reversed and ruled that the insured need only have an insurable interest in the property at the time the insurance contract was formed. The insured was not required to maintain that insurable interest while the claim was being negotiated and later litigated. The fact that the insured sold the property after the loss occurred and prior to litigation was irrelevant.