What type of insurance covers risk that we will suffer financial loss over something we own that is damaged or destroyed?

Property insurance is specifically designed to protect individuals and businesses against financial loss due to damage or destruction of property they own. This type of insurance typically covers risks such as fire, theft, vandalism, and certain natural disasters. When a covered event occurs and results in damage or destruction to property, property insurance helps pay for the repair or replacement of that property, thereby preventing significant financial hardship.

Casualty insurance, while related, primarily focuses on liability coverage rather than insuring property directly. It protects against losses that result from legal liability to others, not necessarily the risk of loss of one's own property. Health insurance and life insurance, on the other hand, provide coverage for healthcare costs and life-related risks, respectively, and do not address the concerns of property loss. Therefore, property insurance is the most appropriate choice for covering the financial risks associated with damage or destruction of one’s own property.