The Basics of a Property Insurance Policy

property covered will include real property such as a factory or warehouse and will probably include contents such as stock or, in other words, personal property as specified or otherwise excluded.

As mentioned above, policies vary as to whether or not they attempt to define the property cover in the insuring clause or whether they simply refer to “property” and exclude types of property later in the policy. Some policies will refer specifically to “buildings and contents”, whilst others may refer to “real property” which, unless otherwise qualified, would include all things attaching to the land so that they become part of it and therefore would probably include trees and landscaping around the buildings such as shrubberies and pathways. It may also include underground property such as drains, tunnels and pipes. In Hughes v.PotomacIns. Co., 199CalApp2d239 (1962), even the phrase “dwelling building” was held to include damage to the underlying land.

Frequently, however, whether the insuring clause refers to “property” or “real property”, the policy will exclude land, roads, pavements, bridges and also property in the course of construction or erection and material to be used in the course of the construction and erection of the property. On other occasions, the cost of restoring external landscaping may be referred to specifically and a separate limit applied in respect of each and every loss. It is difficult to identify any consistency and each ARPI