Measure of indemnity: strengthening costs

One of the features of a natural catastrophe is that any property which has to be repaired or rebuilt may have to be so to higher safety standards than those originally applicable. There is no clear authority in England as to whether insurers are required to incur those additional costs, at least up to the limits of indemnity in the policy.

Some insurances make specific provision for this issue. In Islington Park Ltd v Ace Insurance Ltd [2014] NZCA 446 the New Zealand Court of Appeal was called upon to construe clauses which did not make the basis of cover clear.