Property Damage Lawsuits— What Individuals & Businesses Should Know

Accidents happen! No matter how attentive and careful you/your drivers are while driving, there is always a risk of you getting involved in an auto accident and damaging someone’s car or property. If the car/property was insured, the affected party could file an auto accident claim against you/your company on grounds of property damage. You will be liable to pay for damages caused by you to another person's car or property. Transportation companies, in particular, are at a higher risk of getting sued by third parties in the event of a collision or accident.

A bodily injury is not necessary for a Property Damage Claim

Property damage claims made for negligent (failure to exercise reasonable care) actions by third parties don’t always have to be accompanied by bodily injuries to bring a lawsuit against you. Sometimes the claims can be brought for damages solely caused to the property—real or personal.

Losses that can be caused by Property Damage

Property damage claims can lead to a serious of losses. Depending on the case, you might be held liable to pay for-

  • Costs of repairs, including labor and overhead.
  • Replacement value of the lost property.
  • Loss of appraised fair market value of the property.
  • Any other type of “economic” loss to the affected party that would not have happened if the accident had not taken place

Though courts generally base the amount of property damage on the reasonable cost of repair, sometimes the damage can’t be decided. In such cases, the courts examine the fair market value of the property at the time of the collision or other negligent activity. 

The need for Property Damage Liability Insurance

Though most states require drivers to carry a minimum amount of bodily injury and property damage liability insurance, sometimes, it’s simply not enough! You require more coverage for better protection and peace of mind in property damage cases. Buying property damage liability insurance can prevent you from such unexpected financial hits—up to the extent of your policy limits. The coverage is different from auto liability coverage for bodily damage, which offers protection against injuries to third parties in an auto accident. Limits should be sufficient to protect your personal assets. 

Why One West Insurance

One West Insurance has been in the industry for more than 30 years now and has carved a niche for itself for providing top insurance solutions. As your insurance expert, we can offer you quality assistance to help you figure out the right coverage option that can provide you the best protection against property damage as well as bodily injury claims.