Sunday, November 18, 2012

What is Property Damage Insurance?

Property Damage Insurance

Property damage insurance is liability insurance for claims brought against a person who causes damage to another's property, as by an automobile accident.

This includes not only the labor and parts costs associated with car repair, but also replacement for valuables inside the car that were destroyed or even for repairs to stationary objects you may hit like a neighbor's tree.

Some states require you to purchase at least a minimal amount of property damage liability coverage around $5000. However it is recommended to purchase higher coverage amount. Because if for example Mr. X has a $5000 property damage insurance policy and his car hit another car and the cost of repairs goes over the threshold of $5000, let's say the tolal cost of repair is $10,000. He would still need to pay $5,000 out of his own pocket.

Not only is property damage insurance a good idea, but it's a safe bet, considering the cost of replacing or repairing personal property.


  1. Most homeowners buy their homeowners insurance policy because it is a requirement of the mortgage company. Very few homeowners actually read or understand this most important document should a catastrophic event happen which could cost tens of thousands of dollars or more. Homeowners should review the perils which are covered to be sure its what the property owner wants...not just how much is the monthly premium. For example, as a Public Insurance Adjuster, I recently was called to a home which had a sump pump failure. Unfortunately, the homeowner failed to add a sump-pump endorsement to his policy and when his finished basement flooded because the float on the sump pump stuck, he had two feet of water in his basement. Total cost out of pocket was about $22,000.00. Yes, it takes time to read and fully understand the language in the insurance policy, but its time well spent.

    Dan Shrader
    (856) 264-6510

  2. Property can be anything it could be your Car,Home hence, you must have a cover policy like Home Insurance .

  3. Car being your movable property hence it needs a good care so, why compromise in taking a Best car insurance that provides cover wherever your property is, isn't that grate.

  4. Home is place of lots of memories and it also take time and money to making a dream home. it is also very important to have a Home insurance just like having car, health and life insurance.