Assets

What Does Assets Mean?

An asset is an item that holds financial value. In the context of insurance, many individuals purchase insurance policies to protect their assets. Asset owners may face financial losses if their assets are damaged, stolen, or lost. Insurance policies provide reimbursement for such losses, provided the assets are covered by the policy.

Insuranceopedia Explains Assets

Assets that people commonly purchase insurance for include cars, homes, businesses, computers, jewelry, and many others. Many homeowners’ policies provide coverage not only for the house itself but also for other assets within the home. Higher-value items like jewelry or expensive electronics often need extra protection through a personal property floater, since standard policy limits may not be enough to replace them. Perils covered by insurance may include theft, fire damage, water damage, natural disasters, and accidents. When an asset is protected by insurance, it is referred to as an “insured asset.” Without insurance coverage, the damage or destruction of an asset can result in a significant financial loss for the owner.