Introduction

Acknowledgements

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Introduction to Subject

Most people are aware of the pitfalls of having no insurance but the average person will often confess to being somewhat 'in the dark' as to how insurance works in practice. What do all these words bandied about mean? What is adequate insurance? Just what is covered and what for? What happens if I have to make a claim and what can I expect to receive?

These questions will be answered during this course. It will explain how the underlying principles of insurance practice comes about, including what is expected of the insured persons. It will look at the types of insurance policy generally available to landlords in the market, and at the various events or 'perils' insured by these policies. Finally it will discuss the basic procedures and likely outcomes of a claim.

The concept of insurance had been defined as 'the sharing of the losses of the few, by the many'. It was introduced into this country over four hundred years ago by a group of London shipping merchants who met frequently at Edward Lloyd's coffee house (Hency Lloyd's of London) and agreed to share their losses from piracy and shipwreck - common occurences at the time. The concept became very popular, and after the Great Fire of London in 1666, was gradually extended to all types of property and business ventures and misfortunes.

Although the original concept of insurance was simple, over the years it has become more complex to meet the ever expanding needs of the modern world. From the 19th centuary onwards, this led to disputes between insurers and the insured. Many of these disputes became the subject of legal proceedings.

The precedents set by the courts (Common Law), together with Acts of Parliament (Statute Law) which consolidated, amended and added to these precedents, created the basic principles of insurance. It is these basic principles which underlie and govern the way insurance is practiced in the UK today.