What type of risk is typically covered under property insurance?

Property insurance primarily aims to protect against loss or damage to the insured's property. This coverage encompasses a variety of risks, such as theft, fire, vandalism, and certain natural disasters, making it integral for individuals and businesses alike to safeguard their tangible assets. When someone holds a property insurance policy, they are effectively transferring the financial risk associated with potential damages or losses from their property to the insurance provider.

In contrast, other options present contexts that fall outside the realm of property insurance. Legal obligations from accidents pertain more closely to liability insurance, as this type of insurance covers claims for damages or injuries caused to third parties. Natural disasters, while sometimes covered by property insurance, are considered unpreventable events and do not encapsulate the full breadth of what property insurance addresses. Health-related incidents involving the insured are typically covered under health or life insurance, rather than property insurance, which focuses strictly on physical assets and their associated risks.