Does home insurance cover damage to other people's property?
Asked by: Teresa Wolf | Last update: January 25, 2026Score: 4.6/5 (48 votes)
Homeowners insurance is a package policy. This means that it covers both damage to property and liability or legal responsibility for any injuries and property damage policyholders or their families cause to other people. This includes damage caused by household pets.
What does homeowner insurance not cover?
Important: Read exclusions in your insurance contract. Earthquake, flood, mold, earth movement, and “wear and tear” are some of the perils that are usually excluded.
What insurance covers damage to other people?
Liability insurance coverage protects you financially if you're responsible for someone else's injuries or property damage. Liability coverage comes standard with most vehicle and property insurance policies, including auto and homeowners insurance.
What is the definition of damage to property of others?
property damage. n. injury to real or personal property through another's negligence, willful destruction or by some act of nature.
What is the 80% rule in homeowners insurance?
The 80% rule means that an insurance company will pay the replacement cost of damage to a home as long as the owner has purchased coverage equal to at least 80% of the home's total replacement value.
Does Auto Liability Cover Damage To Other People's Property? - ALFA Insurance - Doug Blevins Agency
What is the 50% rule in insurance?
In California's personal injury cases, the concept of 50/50 liability applies when both parties are equally responsible for an accident or incident. This shared responsibility is also referred to as equal fault or shared fault, and it falls under the broader category of comparative fault.
Who should you call first when needing to file an insurance claim?
Notify your agent and/or your insurance company immediately. If anyone is injured or the vehicle damage exceeds $750.00, you must report the accident to the Department of Motor Vehicles within 10 days.
Does homeowners insurance cover damage to someone else's property?
For instance, if a guest is injured at your home or you accidentally damage another person's property, it can help pay the related expenses if you're held legally liable. But keep in mind, you may have to pay the deductible amount that you've chosen before your coverage kicks in.
How to sue your neighbor for property damage?
If the person who damaged your property has insurance to cover their action, you'll likely make a claim against their policy. Otherwise, you can file a lawsuit in small claims court or regular court.
Which of the following covers damage you cause to other people's property?
Property damage liability pays for property damage you cause someone else. California law requires you to have this coverage.
What are two types of damage not typically covered by a person's homeowners insurance policy?
Certain catastrophes, like flooding or earthquakes, are generally not covered by basic homeowners policies and require specialized insurance.
What is the new insurance law 2025?
This law was enacted to increase the minimum liability requirement to ensure that drivers in financial hardships are protected and properly cared for in the event of a car accident. The new minimum liability requirements will be adjusted to the following: $30,000 for bodily injury or death per person.
What is property damage in insurance?
Property damage liability coverage is required by law in most states. It typically helps cover the cost of repairs if you are at fault for a car accident that damages another vehicle or property such as a fence or building front. Property damage liability coverage usually does not cover damage to your own vehicle.
What not to say to home insurance?
Avoid Misleading Phrases: Be cautious with your words. Phrases like “I think” or “It might have been” can introduce doubt and ambiguity into your claim. Instead, stick to clear, confident statements that are supported by your evidence and records.
Which of these are not usually covered by homeowners insurance?
Luckily, most natural disasters are covered under home insurance. Your policy probably covers wind storms, hail, lightning and wildfires. There are a few things that your policy may be missing, though. More than likely, your policy doesn't cover flooding or earthquakes.
Does home insurance cover accidental damage?
Put simply, accidental damage cover is here for you when things go wrong. It's often classed as an optional extra, but really it's pretty important. It provides additional cover for damage not otherwise included in your home insurance policy. Think smashed TVs, dropped laptops and spilled wine on the sofa.
How much can you sue for property damage?
In short, in this situation, the most you can recover is the fair market or "actual cash" value of a damaged item (the amount you could have sold it for), figured at the time the damage occurred.
Am I liable for storm damage to neighbors property?
A windstorm is considered an “Act of God”, a legal term for natural events outside of human control for which no one can be held responsible. This well established common law is why a claim of this type is almost always denied for liability.
What is it called when someone damages your property?
Destruction of property encompasses vandalism (deliberate damage, destruction, or defacement), building implosion (destroying property with explosives), and arson (destroying property with fire), and similar crimes that involve unlawful infliction of damage to or destruction of personal property or real property.
Am I liable if a kid gets hurt on my property?
Under the rule of attractive nuisance, whoever owns or controls a piece of property can be liable for physical harm caused to young children, even when the children have trespassed on the property.
What voids homeowners insurance?
Common exclusions in even the most comprehensive homeowners policies include: earth movement, such as earthquakes; sinkholes or landslides that damage your home; water damage, such as floods or sewer back-ups that leak through a pipe or seep through the foundation causing damage to your home; damage resulting from ...
Which two are not covered by homeowners insurance?
Standard homeowners insurance also won't cover: Damage you intentionally cause to your home. Damage from war or government seizure of your property. Damage due to nuclear accidents.
When someone hits you, do you call your insurance or theirs?
For example, if your car repair damage is $19,000 and the other driver's insurance covers up to $15,000, you still have to pay $4,000 in repair bills. In this case, your car insurance company may cover the costs resulting from this underinsured driver. This is why you should call your insurance if someone hits you.
What is the downside of filing an insurance claim?
It could increase your premiums
When determining your premiums, insurance companies consider your likelihood of filing a future claim — which could cost them money. The higher your perceived risk, the more likely you are to pay more in premiums. Your claims history tends to play a direct role.