In July of a certain year, continuous heavy rains caused floods in a certain place. The floods entered a cigarette warehouse of the local tobacco, alcoholic and non-staple food company, and the cigare

In July of a certain year, continuous heavy rains caused floods in a certain place. The floods entered a cigarette warehouse of the local tobacco, alcoholic and non-staple food company, and the cigarettes on the bottom floor were soaked by the floods.

The insurance company should compensate for all sales price difference losses

Reason: 1. Although the cigarettes sold at reduced prices were not flooded, they were damaged by moisture and floods. Flooding is the proximate cause and dampness is the result. According to the principle of proximate cause, moisture on cigarettes falls within the scope of insurance coverage, and the insurer should be liable for compensation.

2. Although the insured unilaterally sold the damp cigarettes at a reduced price without the consent of the insurer, it is excusable due to the fact that the cigarettes cannot be preserved due to moisture and will become moldy and lose all their value in a short period of time. At the same time, cigarettes will inevitably become moldy when exposed to moisture, and mold will inevitably depreciate their value. It is correct for the insured to take reactive measures before changes occur.