Skyward Aviation

04 September 2013

Court Decisions , Insurance Law

In Skyward Aviation 2008 Ltd v Tower Insurance Limited the HC looked at the insurance policy of a house in the red zone.  The Court found that if a claim is being settled on a replacement basis then the amount is to be the fair and reasonable price of a replacement house which is to a reasonable and practical extent comparable in size, construction, condition and style to the existing property.  The Court also found that the policy gave Tower the option to elect whether it wanted to settle on the basis of rebuilding, replacing or repairing the property.