Property Insurance: Policies covering risk of explosion, earthquake, and flood. Policies covering accidental loss, damage to property, construction risks

In July 2005 the rain in Mumbai stopped the city, and shopkeepers in Kurla and Sion found their stock under water. Many shopkeepers learn the hard way that a policy bought for fire does not automatically cover flood. Why does a property policy sometimes pay for a burnt shop and not a flooded one, and what exactly did the owner buy? This topic teaches you to read a property policy as a list of perils, exclusions and conditions, and to match a loss against it.

In two minutes

Property insurance is a contract of indemnity for loss of or damage to property by the perils the policy names (or, in an all-risks policy, by any accidental cause not excluded); the insured needs an insurable interest, and the loss must be proximately caused by an insured peril.

The rest of this chapter

The full explanation, the cheat sheet, every previous-year question at every mark weight, the quiz and the answer skeletons are part of Law of Insurance on LexBlox Semester. Sign in to unlock the subject, or read Module 1 of Legal Language and Writing free.