Which of the following risks are generally covered under a property insurance policy?

Property insurance policies are designed to protect against risks that can lead to physical damage to property or loss of property. The correct choice identifies specific perils that are commonly included in property insurance coverage.

Theft represents the illegal taking of property, which directly affects the insured's assets. Fire is a traditional peril covered under most property policies, as it can result in significant destruction of both the structure and personal belongings. Natural disasters, such as hurricanes, earthquakes, and floods, are also critical exclusions that property insurance often aims to cover, though some specific types of natural disasters may require additional or specialized coverage.

These elements collectively highlight the fundamental nature of property insurance—providing financial protection against loss or damage to physical property due to specific risks. This understanding is essential for anyone involving themselves in assessing and managing risk within these realms.

The other options represent different types of risks that do not typically fall under standard property insurance coverage. Employee fraud relates to crimes that affect the organization but do not damage physical property; market fluctuation risks are associated with changes in the economy or market conditions that impact business valuation or profitability but do not involve direct physical property loss; and product liability claims pertain to legal responsibility for harm caused by products, which is more appropriately covered