Lloyd's Insurance Law Reporter
LANDEL PTY LTD AND ANOTHER V INSURANCE AUSTRALIA LTD
[2021] QSC 247, Supreme Court of Queensland, Justice Dalton, 11 October 2021
Insurance (property) – Flood damage – Limit on recovery for water overflowing from watercourse or lake – Source of floodwater – Causation – Concurrent causes
Landel Pty Ltd operated a shopping centre in Townsville, Queensland. The premises were insured by Insurance Australia Ltd (IAL), under a policy covering physical loss, destruction and damage and also consequential business interruption losses. The wording incorporated an additional term that provided for a $250,000 limit in respect of: “physical loss, destruction or damage occasioned by or happening through ... flood, which shall mean the inundation of normally dry land by water overflowing from the normal confines of any natural watercourse or lake (whether or not altered or modified), reservoir, canal or dam”. There was monsoonal rain on 31 January 2019, water entering the shopping centre through the roof and through overwhelmed drains. Between 18.20 on 3 February 2019, and about 12.20 on 4 February 2019, water flowing over the ground entered the shopping centre and rose to the height of around half a metre. IAL admitted liability for the 31 January flood but sought to cap liability to $250,000 for the second flood.