Property insurance is an umbrella term for first-party insurance that protects against a loss to the policyholder’s interest in specific property. In other lessons, we went over a property-insurance policy’s typical parts. In this lesson, we’ll look at property-insurance claims.

I. What’s Considered a Loss

Property insurance covers only losses to the insured property itself, not claims arising from that property. For instance, imagine a customer got caught in a store’s automatic door. The door...