we have to look at different types of claim settlements with regard to this question. methods of providing indemnity under insurance policies.

Paper mill was extensively damaged by flood and it is a listed building. it is common for buildings such as these to be replaced or reconstructed. as this is a listed building the value may have significantly decreased on the open market,also the materials involved in the rebuild of these types of buildings may not be readily available.

One case relevant to the case is Reynolds and Anderson V Phoenix Insurance Co Ltd 1978. Please explain this case.

Please outline the details involved in settlement by reinstatement and explain why this is the best option open to the insurer