01 / The meaning
What it means.
Start by identifying who owns each asset and who is responsible for insuring it. A tenant may need cover for fitout and contents while the landlord insures the building, but lease obligations can change that allocation. Property held for customers or suppliers also deserves explicit attention. The premises description, construction, occupancy and fire protection information help establish what the insurer has accepted.
An insured value is only one part of the arrangement. The settlement basis, average clause, excess, debris removal provisions and rebuilding requirements affect what a loss assessment involves. Flood, machinery failure, theft and accidental damage should be checked individually. A property section should also be distinguished from interruption cover: replacing equipment does not automatically fund wages, rent or lost trading income while operations recover.
02 / Put it in context
A practical example.
Hypothetical example: A fire damages a leased bakery’s ovens and fitout. The lease and schedules are reviewed to identify the insured interests, replacement basis and responsible parties. Lost sales during repairs are considered under any applicable interruption cover.
This example illustrates the term. It does not predict a claim outcome.
03 / Read the detail
What to check.
- Check asset ownership, lease responsibilities and property held for others.
- Check current replacement values, stock peaks and average provisions.
- Check insured events and separate limits for additional costs.
04 / Start a useful conversation
A question for your broker.
Which property and recovery expenses are actually included at each location?
05 / Connect the terms
Keep the meaning in context.
06 / Apply it to your business
Related insurance guides.
Further reading
Read the source guidance alongside the relevant policy wording.
General information only. This does not take into account your objectives, financial situation or needs. Before acting, consider whether the information is appropriate for you. Cover is subject to insurer acceptance and the policy terms, conditions, limits and exclusions. Read the Financial Services Guide and the relevant PDS (where applicable) and/or policy wording before deciding.
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