Property insurance: reinstatement

Where buildings or other property have been damaged, the insurers will frequently arrange to have them rebuilt or repaired using contractors selected and appointed by the insurers. In that scenario, a question may arise as to whether the assured or the insurers are liable to the contractors to make payment.

A J Building and Plastering Ltd v Turner and Others [2013] EWHC 484 (QB) shows that, absent special circumstances or contractual arrangements, that responsibility is borne by the insurers and not the assured.