What Is Property Damage Liability Insurance?
Property damage liability insurance is a type of insurance coverage that is typically included in an auto insurance policy. This coverage protects you against any damage you may cause to someone else's property while you are driving your vehicle.
It also protects you if you cause damage to someone else's property while you are operating a rental car or any other vehicle that you do not own.
In addition to auto insurance, property damage liability insurance is also commonly included in homeowners and renters insurance policies. This coverage protects you against any damage you may cause to someone else's property while you are occupying a rented or owned residence.
When damages like these occur, as long as you're insured, your insurance company will cover the cost, minus the deductibles. If your insurer refuses to do so without a valid reason, you should seek the help of an experienced attorney.
At Voss Law Firm here in Texas, we have all the professional help you need. Our insurance claim attorneys will support and defend you till you get every benefit you deserve. Call 1-888-614-7730 today for a free consultation.
Now, let's take a closer look at how liability for property damage works and what it covers.
How Liability For Property Damage Works
Property damage liability insurance works by providing financial protection to a policyholder in the event of damage caused to other people's property as a result of their actions.
When an insured individual or business causes property damage, the first step is to report the incident to their insurance company. The insurance company will then investigate the claim and determine the extent of the damages. If the damages are covered under the policy, the insurance company will pay out the claim up to the policy's limits.
It is important to note that property damage liability insurance only covers damages caused by the insured individual or business. It does not cover damages to the insured's property. For example, if a driver causes an accident that damages their car, property damage liability insurance will not cover the cost of repairs. Instead, the insured would need to have collision insurance to cover damages to their vehicle.
The amount of coverage provided by property damage liability insurance varies depending on the policy and the insurance company. Most policies have a set limit for property damage liability coverage, which is the maximum amount that the insurance company will pay out for damages caused by the insured.
This limit is typically expressed in dollar amounts and may be as low as a few thousand dollars or as high as several million dollars.
In addition to protection against financial losses, property damage liability insurance also helps protect the insured's reputation. You see, when a claim is made against an individual or business, it can harm its reputation and credibility. Having property damage liability insurance demonstrates that the insured is responsible and takes financial responsibility for any damages he or she may cause.
What Does Property Damage Liability Insurance Cover?
Property damage liability insurance covers a wide range of damages including but not limited to:
1. Damage To Other Vehicles
If you are at fault in an accident that damages another person's vehicle, your property damage liability insurance will cover the cost of repairing or replacing the vehicle. This includes damage to the body, engine, and any other part of the car that was damaged in the accident.
2. Damage To Other Property
Property damage liability insurance also covers damages caused by the driver to other types of property, such as buildings, fences, mailboxes, or other structures. If you accidentally hit someone's property with your car, your insurance will cover the cost of repairing or replacing it.
3. Legal Fees
If the other party decides to sue you for damages, your property damage liability insurance will also cover the cost of legal fees associated with defending yourself in court.
4. Damage To Public Property
If you cause damage to public property such as a street sign, traffic light, or park bench, your property damage liability insurance may cover the cost of repairs or replacement.
5. Damage To buildings
If you crash into a building or damage the property of a business, your property damage liability insurance can help cover the costs of repairs. This could include anything from a broken window to structural damage.
6. Damage To Personal Property
If you damage personal property that belongs to someone else, your property damage liability insurance may help cover the cost of repairs or replacement. This could include items such as bicycles, lawn ornaments, or outdoor furniture.
7. Rental Car Damage
If you cause damage to a rental car, your property damage liability insurance may help cover the cost of repairs. However, some rental car companies may require you to purchase additional insurance to cover any damages.
How Much Property Damage Liability Coverage Do You Need As A Policyholder?
Determining how much property damage liability coverage you need as a policyholder can be a complex task, as it depends on different factors, such as your assets, income, and driving habits.
On average, property damage liability insurance can cost between $300 to $500 per year. However, this is just an estimate, and the cost can be higher or lower depending on the factors mentioned above.
Here are some guidelines that can help you determine the appropriate amount of coverage you need:
For starters, you need to understand your state's minimum requirements for property damage liability insurance. Every state has different laws regarding insurance coverage, so be sure to check with your state's department of insurance to find out what the minimum requirements are in your area.
The next thing is to evaluate your assets and income. If you have significant assets, such as a house or investment property, you may want to consider purchasing higher limits of coverage to protect yourself financially in the event of an accident.
Similarly, if you have a high income, you may want to consider purchasing higher limits of coverage to protect yourself from potential lawsuits. If you are sued for damages that exceed your insurance coverage, you could be held personally liable for the remaining amount.
As a policyholder, you also need to consider your driving habits. If you frequently drive in high-traffic areas or on busy highways, your risk of causing an accident may be higher. In this case, you may want to consider purchasing higher limits of coverage to protect yourself financially in the event of an accident.
Finally, it's essential to consider the cost of additional coverage when determining how much property damage liability coverage you need. Generally, higher limits of coverage will cost more in premiums, so you'll need to evaluate your budget to determine what you can afford.
Keep in mind that property damage liability insurance is just one type of insurance coverage that you may need as a policyholder. Depending on your individual needs and circumstances, you also want to consider purchasing additional coverage such as collision, comprehensive, or uninsured/underinsured motorist coverage.
When To Contact Our Texas-Based Attorneys
There may be situations where your insurance company denies your claim for property damage liability coverage. When such happens, know that there's help available.
At Voss Law Firm, our Texas attorneys have all the experience and skills you need to help you recover your loss. They'll fight for you till you get every compensation you deserve. Just call us today at 1-888-614-7730 for a free consultation.