Buy to let investors complained that there were defects in their
new-build flats. As part of these proceedings, they sought to
recover their costs of remedying these defects from the insurer
which had issued building warranties known as "Standard 10
Year New Home Structural Defects Insurance Policies".
Accordingly, Davies HHJ was required to consider the scope of cover
provided by these policies. Much of the case turns on the
particular facts, and policy terms, but the judge made some general
observations as well. These included the following:
1) When interpreting an insurance policy, it is sometimes
permissible to take into account what the policy "ought"
to cover.
The starting point is the natural and ordinary meaning of the
words used, and that cannot be overridden by what the insured may
have reasonably believed was being covered. However, "where
the words used leave reasonable room for doubt as to what was
intended, a construction which would unreasonably
