Real property is land and buildings.
Personal property is movable goods. In the case of real property, to pay for injuries sustained by other people on the insured property Property Damage Property damage may result from fire, flood, or wind. If the insured property is damaged or destroyed, the insurance company covers the loss, unless the loss is excluded. For example, a particular policy on a house may only cover fire. If the house is destroyed by flood, and flood is an excluded risk, the insurance company has no obligation to pay.