TJK (NZ) LTD V MITSUI SUMITOMO INSURANCE CO LTD

[2013] NZHC 298, High Court of New Zealand, Justice Miller, 22 February 2013

Insurance (property) - Measure of indemnity - Building destroyed by earthquake - Whether assured entitled to payment of indemnity before reinstatement

The proper construction of the property policy before the court was that the insurers were liable for reinstatement costs only after the assured had incurred them, although until such expenditure had been incurred the insurers were required to pay on an indemnity basis with an offset against the ultimate reinstatement cost liability.