Sky UK Limited & Anor v Riverstone Managing Agency Limited & Ors

Mace is insured only for damage occurring before Practical Completion.

Mace's possessory interest ended at Practical Completion; the construction contract allocated risk accordingly.

The policy covers physical damage occurring during the Period of Insurance (1 February 2014 – 15 July 2017), not subsequent deterioration.

Wasa International Insurance Co Ltd v. Lexington Insurance Co establishes the fundamental importance of the policy period; 'damage' requires a physical change during the period, not merely subsequent consequences.

Water ingress causing potential deterioration is considered damage, even without immediately visible effects.

The entry of water is a physical change requiring remediation to prevent further deterioration, diminishing the property's value.

The failure to use temporary waterproofing during construction is a single 'event' triggering the £150,000 deductible.

This omission was a proximate cause of the damage, satisfying the unities of time, place, and cause; a decision can constitute an event.

Sky is entitled to the full cost of repairing damage as it existed at the end of the Period of Insurance, including reasonable decanting and out-of-hours work costs.

These costs are not consequential loss, but part of the full cost of remediation; it was reasonably foreseeable that remediation might occur after occupancy.