What type of insurance coverage is designed to cover losses of tangible property?

Property insurance is designed specifically to cover losses related to tangible property, which includes physical assets such as buildings, personal belongings, equipment, and inventory. This type of insurance provides protection against risks such as theft, fire, vandalism, and other hazards that could result in physical damage to property.

Property insurance typically includes various forms, such as homeowners insurance, commercial property insurance, and renters insurance. Each of these policies is formulated to provide financial compensation for the repair or replacement of damaged or lost property, thereby safeguarding the insured against significant out-of-pocket expenses due to unforeseen events.

Other types of insurance, such as liability insurance, primarily address legal responsibilities and expenses arising from claims made against the insured for causing injury or damage to others, rather than covering losses to the insured's own property. Health insurance focuses on medical expenses and healthcare services, while life insurance provides financial support in the form of death benefits to beneficiaries upon the policyholder's passing, rather than covering tangible property losses.