What does property insurance cover?

Property insurance primarily covers financial losses related to various types of property. This includes protection against risks such as damage or loss due to fire, theft, vandalism, and certain natural disasters. The essence of property insurance is to provide coverage that compensates the policyholder for the value of the insurable property, enabling them to repair, replace, or recover from losses incurred.

While liability insurance relates to injuries to third parties, that aspect is not covered by property insurance; rather, it falls under liability policies. Medical expenses for accidents are also not included in property insurance, as these are typically covered under health insurance or personal injury policies. Additionally, investment returns for stockholders are unrelated to property insurance. The focus of property insurance is strictly on protecting tangible and intangible property assets. Thus, the correct answer effectively captures the comprehensive nature of what property insurance is meant to cover.