30 Jul 2013
SKYWARD AVIATION 2008 LIMITED v TOWER INSURANCE LIMITED [2013] NZHC 1856
- Citation
- [2013] NZHC 1856
- Court
- High Court
The policy unambiguously grants the insurer the option to repair, rebuild, replace or make payment; if Tower elects to pay the cost of buying another house the payable amount is the fair price of a replacement house that is reasonably and practically comparable to the insured house when new (same area, condition, style and amenities), subject to the proviso that Tower is not obliged to pay more than the notional cost of rebuilding the house on its original site and that upfront payment is limited to present day value until replacement or repair costs are actually incurred; on the facts Tower…