West Virginia Adjusters Practice Exam

Property insurance primarily protects against damage to one's own property. This type of insurance is designed to cover physical losses or damages to residential structures, personal belongings, and sometimes even loss of use or additional living expenses incurred due to a covered event, such as fire, theft, or natural disasters. The focus is on ensuring that the policyholder can recover and repair or replace their own assets that have been affected by the insured peril, helping to safeguard their financial investment.

While injuries sustained by third parties, losses due to missed rental income, and costs of legal defense are important considerations in the broader context of insurance, they typically fall under different categories. Liability insurance handles injuries to third parties, loss of rental income is often covered under business interruption insurance, and legal defense costs are associated with liability coverage rather than property insurance. Therefore, the primary function of property insurance remains the protection of one's own property against specific types of damage or loss.