Property insurance: betterment

It is settled law that an assured who has insured on an “old for old” replacement sum has to bear the cost of betterment, ie the benefit secured by the assured for receiving a higher standard repaired property than that originally lost.

In Lee v IAG New Zealand Ltd [2017] NZHC 2626 the matter was complicated by the fact that the policy provided for an initial payment on an “old for old” basis, followed – where there was rebuilding – by a top-up on a “new for old” basis.