What type of coverage protects against damage caused by natural disasters?

What type of coverage protects against damage caused by natural disasters?

• A. Liability insurance
• B. Property insurance
• C. Natural disaster insurance
• D. Specialty insurance

Answer: (B)

Property insurance is the correct choice because it specifically covers damage to physical assets caused by various hazards, including natural disasters such as floods, hurricanes, earthquakes, and more. This type of insurance helps policyholders recover losses related to their property, whether it's a dwelling, personal belongings, or business assets, after such damaging events. Liability insurance, in contrast, is designed to protect against claims or lawsuits arising from injuries or damages that a policyholder may be legally responsible for, rather than covering damages to one's own property. Natural disaster insurance is not a broadly recognized category; while it may seem relevant, property insurance encompasses disaster-related coverage within its framework. Specialty insurance generally refers to unique or high-risk coverages that do not fall under standard policies, but property insurance is the primary form of protection against damage due to natural disasters.

Property insurance is the correct choice because it specifically covers damage to physical assets caused by various hazards, including natural disasters such as floods, hurricanes, earthquakes, and more. This type of insurance helps policyholders recover losses related to their property, whether it's a dwelling, personal belongings, or business assets, after such damaging events.

Liability insurance, in contrast, is designed to protect against claims or lawsuits arising from injuries or damages that a policyholder may be legally responsible for, rather than covering damages to one's own property. Natural disaster insurance is not a broadly recognized category; while it may seem relevant, property insurance encompasses disaster-related coverage within its framework. Specialty insurance generally refers to unique or high-risk coverages that do not fall under standard policies, but property insurance is the primary form of protection against damage due to natural disasters.