Which type of situation is typically covered by property insurance?

Property insurance is primarily designed to protect against financial loss related to physical property, such as damage or loss due to theft, fire, vandalism, and certain natural disasters. Therefore, loss due to theft falls squarely within the coverage scope of property insurance, providing reassurance to property owners that they can recover the value of stolen items without significant financial hardship.

In contrast, coverage for accidental injury to a third party is typically addressed under liability insurance, which focuses on protecting individuals from claims arising from injuries or damages they may cause to others. Legal costs for defending against lawsuits would also fall under liability coverage rather than property insurance, as they deal with protecting the insured from legal action rather than covering property losses. Lastly, medical expenses for the insured are generally covered by health insurance or personal injury policies and not by property insurance, which is designed to cover tangible assets rather than health-related costs. This distinction helps clarify why loss due to theft is the correct choice concerning property insurance coverage.