The difference between possession and occupation

Occupation is the right to use and enjoy the property.   Possession is associated with the legal risk  of  loss  or  destruction of  the property and the right to enjoy the benefits associated with the property.

 Many Agreements of Sale state that in the event of the purchaser taking occupation of the property before transfer, the purchaser will take occupation and possession.

 Insurable Interest

It is a legal requirement for a valid indemnity insurance contract that the insured must at the time of loss, have an insurable interest in the property insured. An insurable interest exists when an insured has a financial interest in the property insured. According to authors Reinecke and van der Merwe in General Principles of Insurance Law published in 2002, a buyer of property (both moveable and immovable) has an insurable interest in such property despite not yet being the owner. The purchaser although not yet having real rights has the ius ad rem acquirendam (a personal right of delivery arising ex contractu) and  if  the  property  were  destroyed  this  right  of  delivery  would  become compromised. This principle also applies to a tenant, as he has rights of use in the property hired by him that are both insurable and would become diminished were the property to be damaged or destroyed.