What is covered by property insurance?

Property insurance is specifically designed to cover losses or damages to personal property and buildings. This coverage generally includes a wide range of risks, such as theft, fire, vandalism, and certain types of natural disasters. The goal of property insurance is to protect the insured's physical assets from unforeseen events that could result in significant financial loss.

When considering different types of risks associated with property, it is important to note the comprehensive nature of property insurance. It safeguards not just against the loss of physical buildings but also their contents, ensuring that people can recover from a variety of incidents that might affect their property. This is crucial for homeowners, renters, and businesses that rely on significant investments in their physical assets.

The other options focus on areas that are not covered by standard property insurance. For instance, liabilities unrelated to properties would fall under liability insurance, which addresses different risks. Exclusively natural disasters are not the sole focus of property insurance as it also covers man-made events. Lastly, losses related to business interruption are typically covered by business interruption insurance, which is separate from property insurance and focuses specifically on lost income from disruption of business operations rather than physical asset protection.