insurance may not pay for damages to car due to theft

What is the name of your state? California

i have allstate auto insurance. i am the insured on the policy. my brother's car is insured under the policy. he is one of the listed drivers. i do not hold title to his car. my brother's car has comprehensive auto insurance to cover losses to his car.

his car was broken into and his stereo system was stolen. the insurance company said they may not pay the claim to pay for stero system and damages to the dashboard because i do not have an insurable interest in his car since i am not a register owner of the car. can the insurance company not pay the claim? why would they sell me comprehensive insurance knowing that if i make a claim on the car, they will not pay it.

[stephenk]

when you applied for the insurance for your brother's car did you list yourself as an owner of the car? Does your brother live with you?

the policy was originally under my sister's name, but she moved to hawaii last year. she is co owner of the my brother's car. after she moved to hawaii, the policy was transferred to my name. but they never asked if i was the registered own of the car when the policy was transferred over. yes, he does live with me. so can they really not pay for the repairs?