This decision has been eagerly awaited, not only by the thousands of policyholders affected by red zoning, but also by their insurers.
 
The two central issues before the court were:
  1. Whether the red zoning of a residential property is a total loss of the insured house, triggering a payment of full replacement value under the insurance policy;
     
  2. If red zoning does not lead to a total loss, had Tower fulfilled its policy obligations by electing to pay the cost of the hypothetical scoped repairs?

 

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