LOSS OF LAND VALUE

(a) In the event of the absolute refusal by the competent local or Government authority to allow the reconstruction of the premises following destruction or damage the Insurer shall pay by way of indemnity the difference between the Land Value before and after the destruction or damage; or

(b) In the event of the competent local or Government authority allowing partial reconstruction only of the premises after destruction or damage the Insurer shall pay by way of indemnity the difference between the Land Value after such reconstruction and the Land Value before the destruction or damage

less any sum paid by way of compensation by such authority arising out of the action referred to in (a) or (b) above.

Provided that if at the time of the damage the Land Value shall be more than the sum insured hereunder the Insured shall be considered as being his own Insurer for the difference and shall bear a rateable proportion of the loss accordingly.

Definition

Land Value – the sum certified by the Valuer General as being the value of the land so described in the Policy after due allowance has been made for variations in or special circumstances affecting such value either before or after the damage or which would have affected the value had the damage not occurred so that the figures thus adjusted shall represent as near as may be reasonably practicable the true Land Value pertaining both before and after the damage.

Special Conditions

1) Settlement shall be made following the ruling of the competent local or Government authority resulting in the loss of land value. Should settlement have been made however and subsequently the ruling of the competent local or Government authority be changed prior to completion of the reconstruction resulting in an increase in the Land Value that part of the claim paid in excess of the revised Land Value shall be refunded to the Insurer.

2) All differences relating to the Land Value arising out of this Policy shall forthwith be referred to the decision of two Registered Valuers one to be appointed by each of the parties and in case the two Registered Valuers do not agree of a third Valuer appointed by the President of the Australian Institute of Valuers as an expert whose decision shall be binding.