22 Dec 2014
EAST v MEDICAL ASSURANCE SOCIETY NEW ZEALAND LIMITED [2014] NZHC 3399
- Citation
- [2014] NZHC 3399
- Court
- High Court
The insurer is not entitled to make replacement value payment conditional on costs actually being incurred; if the insured elects replacement value cover the insurer must pay the reasonable cost to rebuild or restore (subject to floor area limit) assessed objectively. On the facts the court is satisfied on the balance of probabilities that underpinning or equivalent engineered remedial works are necessary to restore the dwelling to 'substantially the same as new' and quantum is to be determined subsequently, taking into account statutory consenting processes.