What is defined as a type of property insurance that covers damage caused by fire?

The correct choice is fire insurance, which is specifically designed to provide coverage for property damage resulting from fire. This type of insurance typically covers the cost of repairing or replacing damaged property due to fire, including the structure of a building and any personal belongings that may be lost or damaged in the event of a fire. Fire insurance can protect homeowners and businesses alike against the financial loss associated with fire incidents, offering peace of mind and financial security.

Other options like auto insurance, life insurance, and health insurance are not applicable in this context. Auto insurance pertains to vehicles and related liabilities, life insurance focuses on providing financial protection to beneficiaries upon the insured's death, and health insurance covers medical expenses incurred by individuals due to health-related issues. Each of these insurance types serves distinct purposes and does not address the specific needs related to fire damage.