Property damage involves the damage, breakage, or deterioration of something on your company's property. This can include your work vehicles, your commercial properties and the items they contain, such as office equipment and merchandise. Property damage is a risk that may be covered by property insurance. However, a policy may not cover a particular hazard.
Damage caused by an earthquake, for example, must be specified in most property insurance policies so that the company can financially assist the policyholder in repairing or rebuilding the damaged property. For the owner of a damaged property who does not have property insurance, their only hope of obtaining a deferment is to ask the government for a tax reduction after reporting the damage. Nearly every state has some type of minimum car insurance requirements, including liability for property damage. An auto insurance policy financially protects drivers in the event of an accident, and property damage liability insurance is a type of coverage that is included in auto insurance policies.
If you cause an accident and damage someone else's property, your insurance company will pay on your behalf up to the coverage limit listed on the statements page of your insurance policy. Property damage liability is part of an auto insurance policy that helps pay for the repair of damage caused to someone else's vehicle or property. When buying car insurance or renewing your current auto insurance policy, it's important to understand what liability for property damage does and doesn't cover and what coverage you should include in your auto policy.