What type of loss does property insurance aim to cover?

Property insurance is specifically designed to cover losses and damages to physical assets, such as buildings, homes, personal belongings, and other forms of property. The focus of property insurance is on providing financial protection against risks like theft, fire, vandalism, storms, and other hazards that may result in the loss or damage to property.

Understanding the nature of property insurance helps clarify why it does not cover personal injury, premature death, or medical costs associated with injuries. Personal injury is typically covered under liability insurance, while financial losses from premature death are addressed through life insurance. Medical costs related to injuries fall under health insurance. Therefore, property insurance distinctly concentrates on protecting tangible property, making the coverage of loss and damage to property the most accurate description of its purpose.