What is the primary purpose of property insurance?

The primary purpose of property insurance is to protect against loss or damage to property. This type of insurance is designed to cover various risks that could result in financial loss due to events such as fire, theft, vandalism, or natural disasters. By obtaining property insurance, policyholders can safeguard their investments in real estate, personal belongings, and other valuable assets from unforeseen events that could lead to significant financial hardship.

Property insurance provides peace of mind, as it ensures that if a covered event occurs, the insurer will compensate the policyholder for the damages or losses incurred, allowing them to repair or replace their property without facing substantial out-of-pocket expenses. The focus is fundamentally on the protection of tangible property rather than on personal injury or liability issues, which are addressed by different types of insurance products.