Zurich in legal dispute with care home that fell off a cliff

Zurich Insurance is locked in a legal battle with the owners of a Jersey care home after the latter tried to claim for extensive damage caused to the property following a storm and subsequent landslide.

The London High Court case saw Cheval Roc Residential claiming £4.3m for business interuption and £2.2m for damage to the property, following the 2016 incident which saw sections of the care home plunge onto a beach, with the remainder left perched on the edge of a cliff.

Court papers seen by Insurance Times reveal the two sides are in dispute as to the cause of the landslip, with Zurich alleging soil erosion, which it said fell outside of the policy cover.

Cheval Roc countered that the damage was caused by rainfall and groundwater pressure, which it alleges should put the claim within the remit of the policy terms.

The incident closed the care home for 20 months while repairs were carried out, forcing the residents to be relocated for the duration, according to the Jersey Evening Post.

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