Property damage liability refers to an insurance policy that helps you out when you are involved in an accident which was your fault. When you purchase this type of insurance policy, they will be responsible for paying expenses of those that were affected in the accident. When talking about property damage liability, it could include damaged cars that were involved in the crash caused by you. The policy will not cover for injuries that you incurred in the cause of the accident because it is not included in the policy. That is why it is exclusively property damage liability.

General contractors have not much of a choice because most states require them to have this type of insurance policy before they will be certified qualified general contractors. Before collecting any contract as a general contractor, you must first apply for property damage liability because it is one of the criteria for becoming a general contractor in most States. Another name for this type of policy is bare bones insurance. The reason being that it only covers a minimal level of the legal requirement. That is why when you are applying for this type of policy you should also have other insurance policies just to ensure your security and protect your assets. Before applying for this type of policy, you should first have an idea of how it works because it is the most basic of all types of policies.


Types of Property Damage Liability

Car damage is very expensive that is why even residents are required to have property damage liability. You will be surprised to find out that little dents on a car can cost so much to repair, but with property damage liability, your insurance company will cover the expenses. It is not every time you get involved in a car accident that damages will occur, but whenever it does and it is very severe, the insurance company can take care of the expenses. If the case is as bad as the other person ending up dead and the car was badly damaged, you will pay for both damaged cars and the funeral expenses of the other party will be covered by you. If you sustain injuries in the course of the accident, you will be the one to pay for your medical expenses. This type of insurance policy only covers expenses for the victim and injuries.

Under property damage liability, there is always a maximum amount that the company will cover depending on the type of coverage you bought. Compensations for property damage and injuries will be covered by the insurance company depending on the coverage you have with the company. It is always a good idea to increase your premium so as to meet up with the compensation that the company has to offer. Getting insurance for yourself is also necessary because this will provide you with compensation when you get involved in accidents caused by you.

You should’nt take insurance policies for granted that is why you should ensure you gather as much information on any type of insurance policy before getting it. You should also talk to an agent to find out the best options for your needs. You will find out that handling costs of car repairs and medical expenses will be properly managed by the property damage liability coverage. Failure to get this type of insurance policy will only increase your bills when paying for car repairs of the other person and their hospital bills and you will end up losing large sums of money and properties. You can never tell when an accident might occur, but with the help of this type of policy, you will be safe and secured.

When talking about property damage liability, houses are also involved in the properties that could be covered by this type of insurance policy. When general contractors are involved in a situation where they damage the properties of the neighbors like houses, cars and fences, with property damage liability coverage, they would be on the safe side. The insurance company would settle any losses as regards to the houses, fences and cars.


Limits to Property Damage Liability Coverage

There are limits to property damage liability which could involve: maximum bodily injury insurance payment for one person, maximum property damage insurance payment and maximum bodily insurance payment for one accident which is $20,000, $30,000 and $50,000 respectively.

If there was an accident when involved in a project offered to you as a general contractor, the claimants would come after you if your insurance company fails to pay for compensations and that is why you should also get an insurance coverage for yourself. You can get personal injury protection (PIP) and collision insurance so that your own medical dills and losses will be covered. Click here to get a qoute.

There are some countries where fault are not assigned to any party in the case of an accident and in this case, everybody has to pay for their respective losses. This is the reason why you need personal injury protection because it is one of the requirements in states that assign no fault to any party in the case of an accident.

In the United States, every driver must have property damage liability coverage before he can legally drive a car that is why it is commonly referred to as bare bones insurance. Buying this type of insurance policy with large premiums will make you stand a chance of getting maximum coverage. It is very important to get this type of insurance policy because it is the very essence of any car insurance. When you are getting car insurance, you should also get property damage liability coverage just to complement it and also to be in line with your risk profile and budget.

For every general contractor, it is almost a necessity to get property damage liability because you can never tell when you will encounter a situation where you will be the one responsible for the damages caused on the neighbor’s property. Just to make sure you are on the right track, getting property damage liability coverage is very necessary.

Written by: John Brown
John has more than 25 years of experience in the insurance industry. He grew from a star insurance producer to owning one of the largest agencies in the country; he's a reference regarding contractor's insurance, commercial insurance, and builders' risk insurance.