What type of insurance involves the insurer paying the insured directly?

The correct answer is property coverage. This type of insurance provides financial protection for the insured's physical assets, such as homes or personal belongings, against risks like theft, fire, or natural disasters. In property coverage, when a covered event occurs, the insurer pays out claims directly to the insured for the loss or damage, allowing them to recover from the financial impact.

This model is fundamental to property insurance, as the primary purpose is to protect the insured's property and offer reimbursement for losses, which is a key characteristic of this type of coverage. Other options like adverse selection relate to risk assessment, binders are temporary agreements confirming coverage before a policy is issued, and liability coverage focuses on protecting against claims made by others rather than direct payouts to the insured for their own losses. Thus, property coverage stands out as the type that directly involves the insurer making payments to the insured.