Real Property

What Does Real Property Mean?

Real property refers to land, any structures attached to it, and anything that grows on it. It can be legally owned, occupied, transferred, or sold and is subject to state taxation. Additionally, it can be insured.

Real property is also known as real estate.

Insuranceopedia Explains Real Property

While personal property refers to movable items, real property refers to a specific piece of land and any structures built on it. The owner of real property has the right to sell or transfer ownership, often to heirs or beneficiaries. Owners are also responsible for paying property taxes.

Real property can be insured to cover certain liabilities and risks. For instance, property insurance can compensate for financial loss if a building is destroyed by fire. Standard homeowners insurance covers fire damage to the house and any structures attached to it. Because real property includes the land plus anything built on it, figuring out how much homeowners insurance you need usually means estimating what it would cost to rebuild the house and attached structures, not the value of the land itself.