Which of the following best describes Property Insurance?

Property Insurance is best described as insurance that protects against loss of private property. This type of insurance provides coverage for physical goods that can be damaged, lost, or destroyed due to various risks, such as fire, theft, vandalism, or natural disasters. By focusing on the protection of personal property, property insurance allows individuals and businesses to mitigate financial losses resulting from unexpected events that affect their assets.

Other options describe concepts that do not fully encapsulate the essence of property insurance. For example, liability protection is a different type of coverage that addresses legal responsibility for damages to others rather than covering one’s own property. Coverage for loss of personal belongings does pertain to property insurance but is more specific than the broader definition required. Lastly, policies covering only commercial properties are limited because property insurance also spans residential coverage, not just business-related assets. Thus, the distinction that property insurance encompasses protection against loss of private property in a general sense makes it the most accurate description among the choices provided.