ABSTRACT
What the rain clouds constitute is a threat to your assets – that is, your possessions are ‘at risk’ of water damage and you may sustain a loss. The extent of your loss depends on the value of your assets and the form they are in. For example, if your main assets are ancient Greek statues, a few hours of rain will do little damage. If you are a collector of first edition books, the same amount of rain will create a substantial amount of damage. The important point to note is that the extent of the loss is independent of the hazardous event, since it depends on the nature of the assets. This is summarised in the diagram below.
