What type of property is considered impaired if it cannot be used due to a defect?

Tangible property includes physical items that can be touched or felt, such as equipment, machinery, and vehicles. When tangible property is unable to be utilized due to a defect, it is deemed impaired. This impairment affects the property's value and usability, often resulting in a need for repairs or replacement to restore its function.

In contrast, other categories of property, such as real estate, refer to land and buildings which may face different considerations when it comes to impairment. Intangible property, which includes assets like patents or trademarks, does not have a physical presence and therefore the concept of being “impaired” due to a defect doesn’t apply in the same manner. Personal assets, while they do include tangible property, are a broader category and do not specifically focus on the impairment aspect tied to defects. Thus, identifying tangible property as the type that is considered impaired due to a defect is accurate, reflecting its physical nature and how defects directly impact its usability.