If you damaged part of your neighbor’s house in a car accident, you would need to use Property Damage Liability insurance.
What is Property Damage Liability Insurance?
Property damage liability insurance is a standard component of auto insurance that covers damage you cause to someone else’s property while driving. If you accidentally damage your neighbor’s house during a car accident, this type of insurance would help pay for the repairs to their property.
For example, if you:
- Accidentally back into their house
- Lose control of your vehicle and hit their fence or structure
- Cause damage to their property through any driving-related incident
The property damage liability coverage would:
- Pay for repairs to the damaged part of the house
- Cover structural damage
- Help replace or fix any damaged property elements
Most states require a minimum amount of property damage liability coverage, typically ranging from $5,000 to $25,000. However, it’s often recommended to have more coverage than the minimum to ensure you’re fully protected in case of significant damage.
