Property Damage Coverage. The Ultimate Handbook: A Step-by-Step Guide!

Car Crash into Street Light Property Damage

What is Property Damage Liability Coverage

In the event of an at-fault accident, property damage liability pays for any damages you cause to other people’s property up to your policy limits. Property damage liability coverage does not include your property. If another driver hits you and is found to be at fault, their property damage would pay for your damaged property up to the policy limits.

What does property damage liability cover?

In general property damage liability covers damage to other’s property.

Here are some examples of what property damage pays for:

phone Poles
street signs
and a lot more

If it does not belong to you and you caused the damage as a result of crashing your car into it. It’s likely to be covered under your property damage liability coverage.

How much property damage liability do i need?

– Property Damage limit options

Property damage liability limits can be included in your car insurance policy as a single limit or bulked in together with your bodily injury coverage as a combined single limit.

Single Limit Property Damage Coverage

When property damage coverage is purchased as a single limit, you will have the option to choose how much coverage you want to be included in your policy. Most insurance companies typically offer you a choice of 4 limits to choose from $10,000, $25,000, $50,000, or $100,000. Whichever limit you choose will be the max payout to cover any damage to property you cause to others.

Combined Single Limit Property Damage Coverage

Most companies will also allow you to purchase bodily injury and property damage liability coverage together as a combined single limit (CSL). If you choose this option you will have one limit that includes coverage for both bodily injury and property damage. Most companies will offer you a combined single limit of $500,000. In this scenario, your total liability coverage for injuries to others as well as property damage you cause that belongs to others is capped at $500,000.

Learn more about bodily injury liability coverage and its limits here.

How Much Property Damage Liability Coverage Do I Need?

The difference in price between $10k and $100k for a driver with a clean driving record and no accidents is fairly inexpensive. The minimum $10,000 in property damage coverage can usually cover the costs of a small fender bender of an average car. But an accident is just that, an accident. We didn’t mean to wreck another vehicle, hit a building or damage anyone’s property, So it’s safe to assume we do not know how much damage we will cause in advance and repairs to vehicles, buildings, and other property can add up fast. When you go to purchase your auto insurance policy or to find out the difference in price, Simply ask your insurance agent to tell you the difference in price for the different limit options. You might just be surprised how inexpensive it is to go with the higher-limit options.

Why is property damage liability important?

If you are at fault in an automobile accident and damage property that belongs to others, you are liable for the repairs or replacement costs the property owner incurred. Your property damage coverage limit decides the maximum your insurance company will pay to cover these expenses. So for example: if you have $10,000 in property damage coverage and cause $18,000, you will be on the hook for the difference of $8,000 in this scenario. You can be sued to pay for the damages you cause and for this very reason, It’s important to carry higher limits of property damage coverage to protect yourself and your assets.

Is property damage liability required?

Yes, Florida requires you to carry at least a minimum of $10,000 in property damage coverage and at least $10,000 in personal injury protection to register a tag and drive a car in the state of Florida. Failure to maintain the minimum insurance required in Florida can result in your driver’s license being suspended, fines, and more.

Additional coverage options for property damage liability

If you need more property damage liability coverage above and beyond what your auto insurance policy can offer, you do have the option of picking up more coverage through other policy types. An umbrella policy for example can offer you a million dollars or even more in liability coverage that can include coverage for property damage to others, injury to others, and a lot more. An umbrella policy gives you coverage above and beyond what your auto or home insurance policy can offer you and is a great way to get you the extra protection you need.

Contact A & J Insurance Services

Confused about how much property damage coverage you need? Don’t risk being underinsured. Contact us for a free consultation (561) 586-4955 or use our online quote generator to find the best rates and coverage options for you.

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