Alberta General Insurance Level 1 Practice Exam

Property insurance is designed specifically to cover damages to personal property, which includes both physical assets like homes and personal belongings. This type of insurance provides financial protection against various risks, such as fire, theft, vandalism, and natural disasters. It helps individuals recover the value of their damaged or lost property, alleviating the financial burden that can result from unexpected incidents.

In contrast, health insurance focuses on covering medical expenses and healthcare services rather than physical property. Liability insurance protects against legal claims for damages to other people or their property, addressing the financial responsibility for harm caused to others. Life insurance, on the other hand, provides a financial benefit to beneficiaries upon the death of the insured, which is not related to property protection. Thus, property insurance is the correct answer as it directly relates to safeguarding personal assets from various forms of damage.