What is the primary purpose of property insurance?

The primary purpose of property insurance is to cover damage or loss of property. This form of insurance is designed to protect an individual's or business's physical assets against risks such as fire, theft, vandalism, and other perils. By providing financial reimbursement or replacement costs for damaged or stolen property, property insurance plays a crucial role in financial planning and risk management for both homeowners and businesses.

While covering lost income from business operations, security against theft, and protection against liability claims are important aspects of comprehensive risk management, they represent specific features or types of coverage that might exist within broader insurance policies. In contrast, property insurance fundamentally aims to ensure the integrity and availability of physical property, thus making it clear why it is regarded as the primary purpose of such insurance.