Which type of insurance is characterized by a contract that promises to indemnify the insured after loss?

Property insurance is characterized by a contract that promises to indemnify the insured after a loss. This type of insurance is specifically designed to protect individuals and businesses from financial loss due to damage or destruction of their property. When a covered event occurs, such as a fire, theft, or natural disaster, property insurance provides compensation to the insured for the actual cash value or replacement cost of the lost or damaged items, depending on the terms of the policy. This fundamental aspect of indemnity is crucial, as it ensures that the policyholder can recover and be restored to their financial position prior to the loss, rather than profiting from the insurance claim.

Liability insurance focuses on protecting the insured against claims resulting from injuries and damage to other people or property, which is different from the indemnity of one's own losses. Health insurance provided for medical expenses and costs, and life insurance pays out a benefit upon the insured's death to beneficiaries, neither of which inherently involves the concept of indemnity for losses in the same way property insurance does. Life insurance functions primarily as a form of financial protection for dependents rather than a contract designed for loss compensation. Thus, property insurance distinctly fulfills the role of indemnifying the insured after a loss, making it the correct answer.