MANCHIKALAPATI AND OTHERS V ZURICH INSURANCE PLC (T/A ZURICH BUILDING GUARANTEE & ZURICH MUNICIPAL) AND OTHERS

[2019] EWCA Civ 2163, Court of Appeal, Lord Justice McCombe, Lord Justice Coulson and Sir Rupert Jackson, 5 December 2019

Insurance (property) – Measure of indemnity – Calculation of cap on liability – Payment in advance of repairs being effected – Double insurance – Causation – Number of claims

A block of flats was built by JCS, and individual tenants secured 125-year leases. The building was insured by Zurich. The policy contained a number of important terms: the maximum sum recoverable for a home which was part of the block was the purchase price subject to a maximum of £25 million; there was coverage for "Common Parts"; condensation was excluded; an excess was to be borne for each and every claim; and the insurers were not liable where some other form of compensation was available. There were defects in the building and 26 tenants brought proceedings against the insurers.