West Virginia Adjusters Practice Exam

What type of insurance covers damage to a property due to natural disasters?

1. Liability insurance

2. Health insurance

3. Property insurance

4. Auto insurance

The correct answer is: Property insurance

Property insurance is designed to cover damage to physical structures and their contents resulting from various risks, including natural disasters such as hurricanes, floods, earthquakes, and fires. This type of insurance is crucial for homeowners and businesses as it provides financial protection against the loss of property and helps cover the cost of repairs or replacement of damaged items. While liability insurance protects against claims from injuries or damage to other people or their property, and health insurance covers medical expenses, these types do not address property damage from natural disasters. Auto insurance specifically pertains to vehicles, covering damages incurred in accidents or theft, but it does not extend to damage to property like homes or business facilities. Therefore, property insurance is the appropriate choice for covering damage due to natural disasters.