What is property damage coverage?

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Asked May 23, 2011

1 Answer


Property liability coverage, or property damage liability, is the portion of your insurance policy that protects you against the costs of doing to damage to another person's property. The damage is usually a car or other vehicle, but it can also include a fence, mailbox, or any other property owned by someone other than yourself.

When an insurance policy is purchased, you will be covered for two types of liability: bodily injury, and property damage. Bodily injury includes injuries sustained by passengers in your car or other people who were injured by the accident. Property damage covers the property of other people but does not include repairing the damage to your own vehicle. In order to have your own vehicle repaired if you are found at fault, you will need to have another type of auto insurance, known as collision insurance.

When you purchase an insurance policy, state minimum requirements will include property liability, but the minimum requirements may not be sufficient for all accidents. It is important that your policy include enough property damage liability to cover all damages, which could be a formidable amount in the event of a serious accident or damage to unusually expensive property. Failure to have sufficient property damage coverage could potentially be disastrous to tight budgets, as the remaining costs for repairs will be the responsibility of the insured person, and large out of pocket expenses may create a severe financial burden.

Answered May 23, 2011 by Anonymous

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