What type of policy covers damages to other people’s property caused by the insured?

A liability policy is designed specifically to cover damages caused by the insured to other people's property, along with bodily injury claims. This type of coverage is essential for protecting the insured against the financial repercussions of accidents or damages they might unintentionally inflict on others. Liability policies can vary in coverage limits and specific terms, but their primary function remains the same: to provide financial protection from claims and lawsuits that may arise due to negligence or other liabilities.

In contrast, an auto policy primarily focuses on coverage for vehicles and may include liability coverage, but it also encompasses protection for the insured's own vehicle and medical expenses related to accidents. A health policy is designed to cover medical expenses and does not pertain to property damage liability. Lastly, a property policy primarily protects the insured's own property from specific risks, such as theft or damage, rather than covering damages that may occur to someone else's property. Thus, the liability policy is the correct choice as it directly addresses the concern of damages caused to others.