Property insurance: measure of indemnity

New Zealand earthquake cases continue to make new law. The most recent, O'Loughlin v Tower Insurance Ltd [2013] NZHC 670, was a high-profile decision which attracted much press coverage. The basic issue was whether a house had been lost or damaged simply because it was in the Christchurch Red Zone.

In the event the judge was unable to come to a clear conclusion on the amount payable under the policy, and instead decided a number of preliminary issues on the proper construction of the wording before him. The parties are reported to have settled their dispute following this decision.