Property insurance: measure of indemnity

The decision of the New Zealand Court of Appeal in Medical Assurance Society New Zealand Ltd v East [2015] NZCA 250, reversing in part the decision of Whata J in the High Court [2014] NZHC 3399, addresses two questions on the measure of indemnity for damage to buildings: does the assured have to incur expenditure before receiving indemnification; and what is the basis for the assessment of the sum payable where the policy provides an indemnity on an “as new” basis?

East : the facts