What is liability for property damage?

Submitted by Anonymous (not verified) on Mon, 09/29/2008 - 04:17
If your car gets involved in an accident and you are at fault, then this policy pays for any damage to the other party's property. What the other party gets compensation for is not just the labor and part expenditure for repairs, but also for any valuables if inside the car that suffered damage in the accident. This policy also compensates for any stationary object that you hit, like someone's tree or any other object that belongs to that individual.

Do you need property damage insurance?

If you are a responsible citizen and a responsible driver, you must have property damage liability insurance unless you think you can afford the entire cost out-of-pocket. Accidents happen, and it is always better that you are prepared before time. Car repairing can cost you a fortune. If someone sues you for property damage you may be needed to pay a big amount out-of-pocket. Some states require you to have state minimum property damage liability insurance.

How much property damage liability insurance must you buy?

You may buy property damage liability insurance as much as you can afford. Some states, however, have a state minimum requirement for liability for property damage which you must purchase. If you get involved in a serious accident with an expensive car, your state minimum insurance won't be able to provide enough coverage. This means that if you do not have enough coverage, you will be required to pay out-of-pocket which can cost you a fortune. If you can save with property liability insurance, you may be able to provide quite a big amount from insurance and may need to pay just a little out-of-pocket.

An expensive car may be a classic example, and besides that, if you hit someone else's property like a mailbox or even a tree or any other property, you will be responsible. Claims for property damage can cost a fortune; hence, it is advisable that you purchase coverage beyond the state minimum requirement. Property liability insurance has different limits that are set according to the various protection levels. If you increase the liability coverage limit, the policy premium gets increased as well.

How are the limits set in property damage liability?

You can have 2 main options:
  1. Combined single limit policy
  2. Split limit policy

Combined single limit policy provides coverage for a single amount where you can use the entire amount for bodily injury and property damage liability. Split limit policy, as the name suggests splits the amount of coverage and provides protection by dividing the amount you have for bodily injury and property damage liability. Find out more about liability limits from here.

What are the restrictions in property damage liability coverage?

There are certain restrictions to the property damage. They are:
  • For multiple vehicle owners: If a vehicle listed on the policy has liability limits, the rest of the vehicles must have them too.
  • All vehicles must have the same selected property damage policy in case of multiple vehicle owners.
  • Each state has set a state minimum liability insurance and this is required by all households to have.
  • Filings: If the filing is on any commercial property, then property damage liability is required.
  • Extra trailers need to give a flat fee for property damage liability.

Related readings:

Whats the importance of liability limits? Is it necessary that I should always maintain the liability limits recommended by my state? What could be the most favorable liability policy limits?

Purpleheaded08

Posted: 29 Sep 2008 04:53 Post Subject:

What could be the most favorable liability policy limits?



I've seen many of the agents would try to establish the fact that the state min. liability limits are not sufficient. They would consider the best liability limits to be 100/300/100. This would indicate 1,00,000 worth of bodily injury for each person in an accident
3,00,000 worth of bodily injury for all injured in each accident
1,00,000 worth of property damage

Regards, ArindamSenIndies

Posted: 29 Sep 2008 04:57 Post Subject:

1,00,000 worth of bodily injury for each person in an accident
3,00,000 worth of bodily injury for all injured in each accident
1,00,000 worth of property damage



Pat, I'd like to buy a zero, please.

Posted: 29 Sep 2008 05:18 Post Subject:

Hi all, the cost of medical treatment is almost the same all over. That's perhaps the reason why people who don't fall within the category of "avg. drivers" would prefer the bottom limit for property damages associated with each accident. That's what is happening at all quarters. Crossbreed

Posted: 29 Sep 2008 05:28 Post Subject:

Hi see..
There are quite a few places wherein if you're at-fault the worth of property damages would cross 1,00,000. These are circumstances that push you to opt for high-end limits. What we'd need to remember over here is that the property damage is all about damages caused to the other person's car for which you have been at-fault.

In the past we've had instances wherein a landscaping alone had been more than 1,00,000. So, these are the most important things that we'd need to consider while deciding about our rates!
Regards, ArindamSenIndies

Posted: 29 Sep 2008 06:37 Post Subject:

The liability coverage saves the policy holder from a prospective lawsuit when he/she has caused damages to other's property or life.

The limits decided by the state authority may or may nor suffice your needs, ie if in your area the cost of health care is comparatively more you may be required to maintain a limit higher than the suggested one. The same theory goes with the property liability as well.

The minimum liability coverage, however, has been mandated by the state authorities, hence, if you're not residing in the states of Wisconsin and New Hampshire (these two states require the driver to maintain enough assets to be able to pay for the damages caused by them), you are required to maintain the liability coverage.

The limits, however, you may need to discuss with the insurance agent.

Regards,
Juanita

Posted: 29 Sep 2008 10:16 Post Subject:

Whats the importance of liability limits? Is it necessary that I should always maintain the liability limits recommended by my state?


Liability coverage in auto insurance policy is meant to pay for the bodily injury or property damage that you cause to someone else. In case of an accident, it also covers the costs for your legal bills. If someone happens to sue you after a car accident, your liability coverage will pay, but only up to your liability limit. The fact is that, your responsibility does not get over with this. If you cause an accident and damage as a result, that crosses your liability limit, you stand a high chance of getting sued for the remaining amount. Hence, it is recommended that you carry at least more than the minimum amount required to be on the safer side :)

Posted: 29 Sep 2008 11:39 Post Subject:

Is it necessary that I should always maintain the liability limits recommended by my state?

These limits are recommended they are the MINIMUM limits REQUIRED by law...and in most cases are way to low IMO..
Pa

t, I'd like to buy a zero, please.

Shot right over his head Todd... :wink:

Posted: 29 Sep 2008 02:34 Post Subject:

I was going to say something about jet fumes but you beat me to it Lori :lol:

State minimums are incredibly pathetic. They won't even replace a vehicle and barely anything more than a stitch or two in the E.R.

I always quote 100,000/300,000/100,000 and work it from there. I show my client that the difference between 50/100/50 and 100/300/100 is less than the cost of a lunch out per month.

I also recommend Personal Umbrella Policies to everyone eligible.

Posted: 20 Aug 2009 06:32 Post Subject: car explosion

What do you do when you have limited liability coverage and filed a claim because your car exploded but your claim is denied even though a building was damaged due to your car exploding?

Posted: 15 Nov 2009 03:32 Post Subject: Someone damages your car

Is there a limit on getting someone to fix car that they damaged and promised to fix but never fixes :?:

Posted: 15 Nov 2009 12:29 Post Subject:

Is there a limit on getting someone to fix car that they damaged and promised to fix but never fixes

I doubt it..but then again, I don't really know what you mean. Who promised to fix it and who didn't fix it? Was the fixee already paid? Who's on first?

Posted: 16 Nov 2009 12:13 Post Subject:

sounds like someone has made a private agreement to fix his car rather than go though their insurance companies, possibly to avoid an excess payment or loss of no claims bonus.

If this is the case, I believe the answer is "no" in any practical sense as you do not have a provable agreement, other than the other persons "word".

I could be wrong, but this is what it sounds like to me.

Posted: 16 Nov 2009 11:55 Post Subject:

That's as good a guess as any Heidrik, the OP was very vague. :wink:

Posted: 24 Mar 2010 07:43 Post Subject: windshield damage

My windshield is cracked. My insurance company said that since I only had liability they wouldn't cover to replace it. Is this true?

Posted: 24 Mar 2010 08:07 Post Subject:

My windshield is cracked. My insurance company said that since I only had liability they wouldn't cover to replace it. Is this true?



Yes, it's true. In order to have coverage for glass damage, you need to have "other than collision" (also known as "comprehensive" coverage) on your car. This coverage pays for glass damage, vandalism, theft and a host of other things that are caused by "other than collision."

This is part of what's called the "physical damage" portion of an auto policy. Your coverage is liability only- it will only protect the other guy in the event it's your fault in an accident. It will pay for bodily injury and property damage to a "third party:" the other guy.

Sorry 'bout that!

InsTeacher 8)

Posted: 02 Jun 2010 05:15 Post Subject:

What type of auto insurance provides coverage from a tree falling on your car as it sits in your driveway?
A. collision coverage.
B. bodily injury liability.
C. comprehensive physical damage coverage.
D. property damage liability coverage.

Posted: 02 Jun 2010 05:20 Post Subject:

C comp

Posted: 12 Nov 2010 12:07 Post Subject: mailbox damage

A driver hit and broke our mailbox. The particular mailbox is required under HOA rules to match all the others in our subdivision. The person who hit and broke the box was observed doing the damage by a neighbor and asked her to write a note with her contact info. In the note she stated her willingness to pay for repair or replacement. The individual has not returned calls about taking care of this. What should we do? File a police report? Our neighbor got the license plate numbers for the driver and we picked up bits from her broken tail light and kept. them. Please advise. Thanks!

Posted: 12 Nov 2010 12:18 Post Subject:

When a person is in an accident they are required by law to exchange DL info and insurance. You did not obtain their insurance information?

I'd see if the police will take a report. They will probably just allow you to file out a form and that is it.

You can contact your DMV and see if they might give you the last known insurance info. Some will, some won't.

You could also knock on the person's door and see why they won't return your calls. Get their insurance information while you are there. If they won't give it right then and there (don't accept a promise to pay at a later date... they had that chance) then report to the police that this person cannot show you proof of insurance as required and refused to give this to you. You may want to see if an officer might accompany you to this person's home. Let them know you don't want to get hurt but need this person's insurance information.

Posted: 12 Nov 2010 09:48 Post Subject:

When a person is in an accident they are required by law to exchange DL info and insurance. You did not obtain their insurance information?



I think, from what the OP wrote, that the "accident" occurred when the OP was not home.

The particular mailbox is required under HOA rules to match all the others in our subdivision. The person who hit and broke the box was observed doing the damage by a neighbor



You should go ahead and replace your mailbox at your expense to comply with the requirements of both the Post Office and the HOA. That will establish your "damages".

You don't really need a police report, although you could request one -- you haven't indicated how long ago this occurred, and the police don't like taking reports of accidents that happened too long ago. But if you know where the person lives, and your neighbor has provided you with a witness statement, you can make a written demand for your damages with the person responsible for them, indicating that you have at least one witness to their negligent act. That is a requirement if you need to later sue the person in small claims court, which is probably where this is heading.

On your end, this is probably a loss of much less than $100. No one wants to turn that kind of a claim into their auto insurance company and risk an increase in premium. So in your letter, indicate that you will file a claim with their insurance company or sue them in small claims court if they fail to pay for your damages in the next 15 days. Be sure to send the letter CERTIFIED WITH RETURN RECEIPT REQUESTED -- it will cost you about $4.50, but it can be used as proof that you sent the letter as required.

If they fail to respond, file the small claims case, and have your witness provide you with a notarized statement describing the incident. Although a notarized statement is not as good as having the witness testify in court, it is acceptable as evidence in a small claims case, where the rules of evidence are much more "relaxed" than in more formal civil proceedings. If you win, you'll get your damages and court filing fees awarded by the judge. Then you just have to collect . . . which is the same problem you already have . . . but at least with the judgment in hand, you will have other legal remedies available that you don't currently have.

Posted: 15 Jan 2011 05:46 Post Subject: Fire Liability Claim

Neighbors house caught on fire and cause damage to next door homeowner house. Is neighor insurance liable for damages to homeowner house?
Neighbor insurance State Farm does not want to give homeowner a copy of title declaration page of Neighbor insured. What should we do?
We are in Michigan.

Posted: 16 Jan 2011 02:51 Post Subject:

OK, so your neighbor's house caught fire and that resulted in a contingent loss to your property. There are two or three ways to handle this.

First, and probably the easiest, is to file a claim with your own homeowner's insurance company, pay the deductible and let your insurance company go after your neighbor's insurance to recover its loss on your behalf. They might even recover your deductible for you.

Second, file a liability claim with your neighbor's insurance company. There is no need to obtain a copy of the declaration page to do this. All you need to know is who the insurance company is (apparently State Farm). They will send an adjuster to survey your damages and effect a settlement. If you do not agree with the value of their assessment, you can continue to push them for more.until one of you gets what you want.

Third, you can simply eend a demand to your neighbor for the value of the loss. If he fails to respond within 20-30 days, then you sue your neighbor in small claims or superior court (depending on the total amount of damage). If you win, their insurance company will have to pay the loss, up to the full liability limit in their policy.

Take you pick.

Posted: 10 Mar 2011 04:21 Post Subject: home damaged

My house was damaged by car.My insurance fixed with out cost me.Now isurance wants me sue the person who did this damage to recover insurance expencise because person was with out insurance.
Do I suppose go and sue this person under my name to help incurance company or insurance have to do it itself?

Posted: 28 Apr 2011 05:59 Post Subject: What is liability for property damage?

Any Insurance company pay for property damage when our vehicle get damaged in any accident or our property gets damaged.

Posted: 01 Aug 2011 01:47 Post Subject:

If a motorist hits a fence that is approximately 3 feet off the road who is at fault the motorist or the property owner both have damage? In tennessee.

Posted: 01 Aug 2011 04:55 Post Subject:

The motorist. Even if the fence was in violation of some code, I can't see how this would in anyway cause the motorist to hit it.

Posted: 04 Aug 2011 11:42 Post Subject:

What type of auto insurance provides coverage from a tree falling on your car as it sits in your driveway?
A. collision coverage.
B. bodily injury liability.
C. comprehensive physical damage coverage.
D. property damage liability coverage.



I am going to choose "none of the above" as it's my neighbor's tree, he knew it was going to fall down, ignored the hazard, the tree fell and hit my car in my driveway. It was a really tall tree. I'm gonna make his homeowner liability pay for it

InsTeacher 8)

Posted: 05 Aug 2011 12:24 Post Subject:

That's why you and I will never score 100% on any state insurance license exam. If the question appeared in that form on the California P&C exam, the answer would be "Other than collision". Adding the bit about the tree being the neighbor's property would certainly take the matter to the homeowner's policy. But there's nothing in the question to indicated where the tree was, so the assumption must be that it's the vehicle owner's tree.

Or maybe the question writer is describing a tree carried 1/2 a mile by a tornado and deposited on the car in your driveway. :oops:

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