Property Damage Insurance Definition
What is Property Damage Coverage. Property damage coverage is one of two types of liability auto insurance.
Personal property coverage a standard component of renters insurance may help cover the cost of replacing your stuff if its unexpectedly damaged or destroyed.
Property damage insurance definition. Property damage liability is the often-overlooked part of your car insurance that pays for damage to other peoples property from an accident youre responsible for. If youre responsible for an accidentProperty DamageCoverage will take care of the cost ofrepairing or replacinganother persons property. Property insurance can include homeowners insurance renters insurance flood.
This protection generally applies to certain risks also referred to as perils such as fire according to the Insurance Information Institute. It helps pay to repair damage you cause to another persons vehicle or property. In business insurance property damage is damage to either the property of a business including its contents or the property of a third party.
Tangible property is something that can be touched or felt like a building or computer monitor. Property damage typically involves physical damage to tangible property or loss of use of tangible property. This coverage pays for the damage to the other peoples vehicle or other property.
This includes specialized forms of insurance such as fire insurance flood insurance earthquake insurance home insurance or boiler insurance. Property damage is defined as some harm that is inflicted upon someones property as the result of another persons negligence willful destruction of that persons property or by an act of nature. Property insurance refers to a series of policies that offer either property protection or liability coverage.
In lawsuits for damages caused by negligence or a willful act property damage is distinguished from personal injury. Insurance protecting against all or part of an individuals legal liability for damage done as by his or her automobile to the property of another First Known Use of property damage insurance circa 1946 in the meaning defined above. Definition of property damage insurance.
Property Damage PD as defined in the general liability policy physical injury to tangible property including resulting loss of use and loss of use of tangible property that has not been physically injured. Links for IRMI Online Subscribers Only. Some minimum amount of both types of liability car insurance is typically required by states.
Also addressed in the homeowners and personal auto policies. Damage caused by an earthquake for example should be specified in most property insurance policies so that a company can financially assist the policyholder with the repair or reconstruction of the damaged property. Noun insurance against losses arising from damage to the property of others as in a motor-vehicle accident.
The other bodily injury liability insurance covers injuries to the other driver and any passengers. Property damage insurance is the portion of your auto insurance coverage that insures the property of other people that your car damages in an accident. Property damage liability coverage is part of a car insurance policy.
Thistypicallymeansdamage to someone elses car but it could apply to any other type of property you damage in an accident. Injury to real or personal property through anothers negligence willful destruction or by some act of nature. However if the at-fault driver doesnt have car insurance -- or not enough insurance -- you may end up dipping into your own pocket to repair your car.
A broad form property damage endorsement refers to among other things liability coverage for damage from work performed by subcontractors on behalf of owners and general contractors. Property damage liability coverage is required by law in most states. However a policy might not cover a particular peril.
If you are in an accident and the other driver is at fault the property damage liability section of the other drivers car insurance covers the cost to repair your vehicle. Flooding caused by a hurricane is an example of property damage caused by an act of nature. What is Property Damage Liability.
The standalone Terrorism policy insures the property real and personal against physical loss or damage by an act or series of acts of terrorism or sabotage. Property insurance provides protection against most risks to property such as fire theft and some weather damage. Property is insured in two main waysopen perils and named perils.
Property damage is a risk that can be covered by property insurance. This insurance can be extended to the consequential losses extra expenses rental value or business interruption resulting directly from a physical loss or damage.
