Florida Community Association Manager Practice Exam

Which type of insurance protects against damages to property?

1. Liability Insurance

2. Personal Insurance

3. Property Insurance

4. Income Insurance

The correct answer is: Property Insurance

Property insurance is designed specifically to protect against damages to physical property. This type of insurance typically covers losses stemming from various risks, such as fire, theft, vandalism, and certain natural disasters. The primary focus of property insurance is to provide financial reimbursement or replacement for damaged or lost assets, ensuring that property owners can recover from unexpected incidents without incurring significant financial burdens. In contrast, liability insurance primarily protects against claims resulting from injuries and damages to other people or their property that you may be found responsible for. Personal insurance usually refers to individual policies that take care of a person's personal property and liabilities but might not cover specific property damage in a broader sense. Income insurance, often linked to disability or loss of income, does not address property damages and instead focuses on providing income replacement in scenarios where a person cannot work. Thus, property insurance is the most fitting answer to the question regarding protection against damages to property.