Property damage: measure of indemnity

The measure of indemnity under a property policy is determined by the terms of the policy. In Islington Park Ltd v ACE Insurance Ltd [2013] NZHC 2983 the policy provided for different measures of indemnity for partial loss depending upon the degree of cover opted for by the assured. The question was whether those measures were relevant in determining whether the property had become a total loss.

Islington Park : the facts