ELCOCK AND ANOTHER v. THOMSON.
(1948) 82 Ll.L.Rep. 892
KING'S BENCH DIVISION.
Before Mr. Justice Morris.
Fire insurance - Valued policy - Agreed value in excess of actual value-Partial loss - Measure of recovery - Policy taken out by D with defendant representative underwriter covering country estate (which included mansion house, farm and other buildings) - Property covered itemised and valued in schedule to policy-Provision in policy:
The sum set opposite each item in this specification has been accepted by the underwriters and the assured as being the true value of the property insured and in the event of loss the said property will be assumed to be of such value and will be assessed accordingly.
Total insurance for £186,950 (being part of £196,795)-Value of mansion and adjoining premises agreed at £106,850-Property sold to plaintiffs for about £50,000-Assignment of policy- Fire-Evidence as to real value at time of fire-Negotiations in progress before fire for compulsory purchase by County Council of mansion and portion of estate-Values of mansion and adjoining premises accepted by learned Judge: £18,000 (before fire); £12,600 (after fire)-Cost of reinstatement (including architect's and surveyor's fees): £43,252-Present cost of erection of similar building: £205,000-Dispute as to amount due under policy-Contentions by plaintiffs that they were entitled to recover
(a) Proportion of difference between agreed value and real value after fire; or
(b) Proportion of percentage depreciation in real value due to fire, as applied to agreed value; or
(c) Proportion of cost of reinstatement.
Contentions by defendant that his liability was limited to
(a) Actual depreciation in real value caused by fire; or
(b) Such percentage of agreed value as cost of reinstatement bore to cost of erection of new building.
Principles to be applied - Marine Insurance Act, 1906, Sects. 27 (2), (3), 69 (3), 71 (3).