Property Damage

What Does Property Damage Mean?

Property damage refers to the partial or total destruction of a building, house, car, or valuable object that is legally owned. The damage may be caused by negligence, an intentional criminal act (such as burglary), or a natural event (such as lightning).

Insuranceopedia Explains Property Damage

Property damage is a risk that can be covered by property insurance, but a policy may not cover all perils. For example, damage caused by an earthquake typically needs to be specifically included in a property insurance policy for the company to provide financial assistance with repairs or reconstruction. If an owner of damaged property does not have insurance, their only option may be to request tax relief from the government after reporting the damage. Coverage gaps like this are part of why many owners compare policies from the best homeowners insurance companies to see which perils are included by default and which require an endorsement.

The person responsible for causing the damage is typically covered by property liability insurance. Most car owners, for example, carry this type of policy to protect themselves financially and legally in the event of an accident that causes damage to other vehicles or motorists. State minimums for this coverage are often lower than what a serious accident actually costs, which is why deciding how much liability insurance you need matters more than just meeting the legal minimum.