South Carolina Personal Lines Practice Exam

Which type of insurance provides coverage for damage due to natural disasters?

1. Property insurance

2. Liability insurance

3. Health insurance

4. Life insurance

The correct answer is: Property insurance

The type of insurance that provides coverage for damage due to natural disasters is property insurance. This insurance is specifically designed to protect individuals and businesses from financial losses resulting from damage to physical property caused by events such as floods, hurricanes, earthquakes, and other natural catastrophes. Property insurance typically covers buildings, personal belongings, and sometimes additional structures on the property. Unlike liability insurance, which focuses on covering claims of negligence or harm against a policyholder, property insurance is concerned primarily with the physical damage and the replacement or repair of property. Health insurance addresses medical expenses and healthcare needs, while life insurance provides financial support to beneficiaries upon the death of the insured. Therefore, for protection against the damage inflicted by natural disasters, property insurance is the most relevant and suitable choice.