Which insurance indemnifies a person with an interest in physical property?

• A. Property Insurance
• B. Builder's Risk
• C. Comprehensive Policy
• D. Protective Liability

Answer: (A)

This question tests how insurance protects someone who has a financial interest in physical property. Indemnification means compensating a party for loss or damage to property, preserving that interest. Property insurance covers physical property and reimburses the owner (and can name others with an insurable interest, like lenders or tenants) if that property is damaged or lost. Builder’s risk is specifically for property under construction, not general property interests, and it often follows the project rather than the broader insured interests. A comprehensive policy typically refers to auto coverage, not property, and protective liability protects against legal liability for bodily injury or property damage you cause, not the property itself. So the option that best fits indemnifying a person with an interest in physical property is property insurance.