When is an earthquake damaged property destroyed?

24 February 2014

Court Decisions , Insurance Law

In Marriott v Vero the High Court found that a building, or a building element, is destroyed when the extent of the damage makes it physically impracticable to repair to its pre-damage condition.  Where there is a reinstatement clause in a policy, the sum insured reinstates after each event that causes loss, notice that reinstatement is not to occur must only be given prospectively and an insured is not entitled to costs of repair up to the sum insured for each event unless the repairs were actually undertaken.