What kind of losses does property insurance cover?

Property insurance specifically covers losses related to damage or destruction of physical property. This includes a wide range of incidents such as theft, fire, vandalism, and natural disasters like floods or hurricanes. By focusing on the protection of tangible items such as homes, commercial buildings, and personal possessions, property insurance addresses the financial impact associated with replacing or repairing damaged property.

The option referencing personal injury does not apply because property insurance is not designed to cover medical expenses or legal liabilities arising from bodily harm. Legal actions often fall under different types of insurance, like liability coverage, which is not the focus of property insurance. Similarly, losses tied to business operations may instead require specialized commercial insurance tailored to business needs rather than traditional property insurance. Therefore, the selected answer accurately reflects the scope of coverage offered by property insurance.