If stock is destroyed in a fire at a warehouse, which insurer would be liable for the claim if both parties have insurance?

In cases where stock is destroyed in a fire at a warehouse, the insurance liability typically falls on the insurer of the party that holds ownership and responsibility for the stock at the time of the incident. In this scenario, Storage UK Ltd’s insurers would be responsible for the claim because they insure the warehouse where the fire occurred and where the stock was stored.

This reflects the principle of indemnity in insurance, which ensures that the insured can recover their loss from their own insurer, ensuring they do not profit from the loss but are made whole as a result. If the stock belonged to Henry but was stored at the warehouse owned by Storage UK Ltd, it is still Storage UK Ltd's insurer that will cover the damage under the policy protecting the premises and its contents, including stock that is temporarily kept there.

The other options, such as both insurers being liable for their share or for 50% of the loss don't apply here because liability is not divided evenly unless specified in joint insurance policies, which is not indicated in this context. The focus is on which insurer covers the specific loss based on ownership and responsibility at the time of the loss.