DALECROFT PROPERTIES LTD V UNDERWRITERS

[2017] EWHC 1263 (Comm), Queen's Bench Division, Commercial Court, Richard Salter QC sitting as a Deputy Judge of the High Court, 26 May 2017

Insurance (property) - Breach of the duty of utmost good faith - Non-disclosure and misrepresentation - Materiality and inducement - Breach of warranty - Date of policy - Divisibility of policy-Marine Insurance Act 1906, sections 18 to 20 and 33 to 35

DP owned a five-storey property in Margate. The ground floor consisted of a restaurant, an amusement arcade and a shop. The next three floors had originally been a hotel, but were later converted into a hostel with 27 residential rooms. The property was insured for £1 million under a policy initially written in July 2007 and renewed in July 2008. The underwriters issued Certificate 003. A number of statements were made about the building, and also there was a series of warranties relating to the occupation and security of the building. In November 2008 the assured requested various amendments to the underwriting information, and the underwriters issued Certificate 004, headed "Cancel and Replace". No additional premium was charged. The premises were destroyed by fire on 16 May 2009.