Indestructibility (Durability) of Land and Fixed Location

Land is physically indestructible; it cannot be destroyed, consumed, or worn out in the way that personal property like a car or a computer can. Because land is permanent, real estate is viewed as a long-term investment and a store of value that lasts indefinitely. This characteristic has important financial implications. For tax and accounting purposes, land is never depreciated because it does not wear out over time. Furthermore, property insurance policies only cover the "improvements" (the man-made structures like the house or garage) because those can be destroyed by fire or storms, whereas the land itself remains even after a disaster.