What Does Assets Mean?
An asset is an item that has financial value. In the context of insurance, many people purchase insurance policies in order to protect certain assets. People who own assets can experience financial losses if their assets are damaged, stolen, or lost. Insurance policies reimburse people for asset related losses as long as they are covered by the policy.
Insuranceopedia Explains Assets
Assets that people commonly purchase insurance for include cars, houses, businesses, computers, jewelry, and many others. Many homeowner’s policies will offer coverage for other assets in the house in addition to covering the house itself. Perils that assets may be covered against include theft, fire damage, water damage, natural disasters, and accidents. If an asset has insurance protection, then it is said to be an “insured asset.” Without insurance coverage, an asset that is damaged or destroyed can represent a substantial financial loss for a person.