by Guest » Mon Sep 29, 2008 04:17 am
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.
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:
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.
- Combined single limit policy
- 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
Purpleheaded08
Posted: Sat Jan 15, 2011 05:46 am 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: Sun Jan 16, 2011 02:51 am 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: Thu Mar 10, 2011 04:21 pm 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: Thu Apr 28, 2011 05:59 am 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: Mon Jun 20, 2011 01:03 pm Post Subject:
Posted: Mon Aug 01, 2011 01:47 am 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: Mon Aug 01, 2011 04:55 am 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: Thu Aug 04, 2011 11:42 pm 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: Fri Aug 05, 2011 12:24 am 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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