1. Risk Management for Perils Involving Property
Real Property:  Real property includes land, any structures on the land, anything growing there, and usually also minerals beneath the surface.
Personal Property:  This is anything that is not real property, including both tangible (“touchable” – having a physical form) and intangible. 

2. Tangible versus Intangible Property
Tangible Property:  This includes money and securities, accounts receivable records (income the company will receive for products or services already delivered), inventory, furniture/equipment/supplies, information technology equipment, machinery, documents, and mobile equipment.
Intangible Property:  This property is anything that cannot be touched, such as ideas, reputation, etc. 

3. Direct Losses Direct Losses involving property is defined
A direct loss refers to physical or financial loss or injury as a direct result of an unbroken chain of events or a proximate cause that led to a risk covered by an insurance policy.
Examples include:
Costs to repair, rebuild or replace
Cost of debris removal
Cost of moving property to prevent further loss

4. Indirect losses
An Indirect loss is defined as collateral damage caused by direct damage to property.
Consequences of an indirect property loss can include:
Loss of revenue, business interruption
Extra expenses to operate
Contingent business interruption
Loss of rental income
Loss of leasehold interest
Reduction in value

5. Examples of Property Loss Events
fire
lightning
explosion
windstorm and hail
smoke
aircraft and vehicle damage
riot and civil commotion
vandalism
water damage
boiler explosion
crime perils
perils of transportation
computer virus

6. Book Value
The established value usually starting with purchase cost and subtracting depreciation during use.
This is somewhat inaccurate because physical property’s market value is usually higher than its book value due to inflation.

7. Replacement Cost
The cost to replace the property on the same premises with other property of comparable material and quality used for the same purpose.

8. Market Value
The most probable price (in terms of money) which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus.

9. Economic Value
This valuation is typically used for equipment or structures that either would not or could not be replaced.  The valuation considers the potential for future income should the property be denied to the owner. 

10. Property Risks Property can be exposed to a number of risks including:
Natural risks:  Hurricanes, tornadoes, floods, etc.
Human risks:  Risks of intentional or inadvertent acts or omissions by human beings inside or out of the organization. 

11. Examples of Losses
Economic Losses: Potential costs of hazards associated with business operations and infrastructure.
Loss of Use: A property owner can lose the use of the property due to physical damage and other reasons (e.g.: A downed utility line shuts down a facility for a day).
Criminal Activity Losses: Property may be susceptible to criminal activity due to burglary, employee theft, forgery).

12. Property Insurance Coverage
One method of identifying potential property loss exposures is by using the commercial property insurance policy coverages as a framework.
Commercial property policy
An insurance policy for businesses and other organizations that insures against damage to their buildings and contents due to a covered cause of loss, such as a fire.
The policy may also cover loss of income or increase in expenses that results from the property damage (PD).
Open Perils Coverage
Refers to property insurance that insures against loss to covered property from all causes except those that are specifically excluded (Formerly called “All Risks”).
Named Perils Coverage
Refers to policies that provide coverage only for loss caused by the perils specifically listed as covered.
It contrasts with open perils coverage, which applies to loss from all causes not specifically listed as excluded.

13. Boiler and Machinery Coverage
Protects your business in case of the sudden and accidental breakdown of your steam boilers, steam pipes, steam engines and turbines, machinery, electrical equipment and mechanical equipment.
Some carriers now use the term "Systems Breakdown Coverage" or "Equipment Breakdown Coverage" to refer to Boiler and Machinery coverage.
The policy should be reviewed to see if the coverage is included.

14. Builder's Risk Coverage
Insures commercial buildings under construction against damage from fire, windstorm, theft and other exposures.

15. Business Income from Dependent Properties
Provides coverage for loss of income resulting from damage to the property of another business on which the Insured depends to continue operations.
The other business is typically a supplier or purchaser of the Insured's products.

16. Equipment Breakdown Coverage
Coverage pays to repair or replace various types of due to breakdown, rupture or bursting, or artificially generated electric current.
Covers computers, scanning equipment, phone systems, air conditioners, refrigeration systems and many other types of equipment.

17. Examples of property losses that may need special policies:
Accounts Receivable
Burglary and Robbery
Computer Fraud and Funds Transfer Fraud
Employee Dishonesty
Mechanical Breakdown
Outdoor Property
Personal Effects
Spoilage Coverage
Utility Services—Direct Damage
Valuable Papers and Records
Water Back-up and Sump Overflow
Floods

18. Risk Assessment Strategies
Property Risk Review including:
Site surveys
Natural catastrophe exposure analysis
Analysis of code compliance
Fixed asset valuation consultation
Business income exposure analysis
Loss investigations
Financial statements
Interviews and questionnaires
Flow chart analysis