ABSTRACT
This chapter explains how insurance works for property and identifies the roles and activities in property insurance. It shows how the risks may be mitigated and to establish the principles of insurance and describes the principal types of cover. The chapter outlines the approach to valuation of property for insurance and a basis for a claim. The person wanting protection, the insured, obtains cover from the insurer, whereby the insurer will indemnify the insured against loss due to a specified peril. The individual or organisation seeking insurance should prepare the business, property and any personnel in such a way that should an event occur which is likely to cause damage or destruction, the damage is avoided or at least mitigated. Case law on disputes about insurance has established a number of principles of insurance which must be observed to ensure that a policy is valid.
