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Under a policy of boiler insurance providing that where liability arises on account of an explosion, proper deduction for
previous depreciation should be made in determining the true cash value, the difference between the value of the boiler immediately before and immediately after the explosion is the measure of damages, unless it is
believed that the boiler has been adequately repaired, in which case it is the cost of such repairs plus the diminution in value caused by the explosion and repair. [FN73] Where a machinery and boiler policy covering a turbine and generator insured against loss to the property directly damaged by an accident, and expressly excluded losses
indirectly resulting from such damages, the damage sustained by the turbine is the measure of damages, [FN74] whereas incidental loss resulting therefrom, such as expenditures for fuel in excess of what would have been
expended had the turbine continued in service, the cost of purchasing electric current, and the cost of using a standby plant, cannot be recovered. [FN75] |
