What type of coverage does property insurance include?

Property insurance fundamentally encompasses coverage for loss or damage to physical assets. This includes various types of tangible property such as buildings, equipment, inventory, and personal belongings. When a covered peril, such as fire, theft, or vandalism, results in damage to these assets, property insurance provides the necessary financial compensation to repair or replace them.

This type of coverage is essential for individuals and businesses alike, ensuring that they are protected financially from unexpected events that could result in significant losses to their property. By focusing specifically on physical assets, property insurance serves to safeguard the investment of the insured in their tangible possessions.

In contrast, the other options refer to different types of coverage or insurance needs. Liability coverage pertains to third-party injuries, which is not the focus of property insurance, while fixed benefits for long-term disability relate to health-related policies. Insurance against business interruptions, although relevant to business coverage, specifically addresses loss of income due to operational downtime rather than direct loss or damage to physical property. Thus, the core aim of property insurance is accurately represented by the recognition of loss or damage to physical assets.