Landel Pty Ltd v Insurance Australia Ltd

The plaintiffs, Landel Pty Ltd, sought compensation from the defendant, Insurance Australia Ltd, for damage caused to a shopping centre by floodwater. The defendant refused to pay, arguing that the damage was excluded by a clause in the insurance policy. The case was heard in the Supreme Court of New South Wales. The central legal issue was whether the exclusion clause in the insurance policy applied to prevent coverage for the flood damage. The court needed to interpret the terms of the insurance policy and determine whether the exclusion for flood damage was applicable.

The court examined the policy and found that the exclusion for flood damage did not cover the type of water ingress experienced by the plaintiffs. The policy specifically excluded coverage for damage caused by "flood," defined as an accumulation of water over an area that is not normally dry land. However, the damage in this case was caused by water entering the shopping centre through the roof, which was not an accumulation over an area but rather a direct ingress. The court held that the exclusion clause did not apply, and the plaintiffs were entitled to coverage. Consequently, the court awarded damages to the plaintiffs in the amount of $21,132.85.