Which type of loss would most likely be covered by property insurance?

Property insurance primarily covers risks associated with physical damage to tangible assets. In this context, physical damage from a fire represents a direct loss to property, which falls within the realm of coverage offered by standard property insurance policies. These policies are designed to provide financial protection against various perils, including those that cause physical destruction to buildings, contents, and other insured assets.

Loss of income due to business closure falls under business interruption insurance rather than property insurance specifically. Legal fees from a lawsuit are generally covered by liability insurance, not property insurance. Similarly, wear and tear on property is considered a maintenance issue rather than an insurable risk, as insurance typically does not cover gradual deterioration. Therefore, the focus of property insurance aligns most closely with the coverage for physical damage from events like fires.