Definition:
A claim for property damage compensation is a report or evidence you submit to the insurance company in the event that your insured property is damaged.
How does a property damage compensation claim work?
Once you experience an accident or discover that your property has been damaged, contact the police to file a report.
It is important to take multiple photos. These photos will provide you with a record that corresponds with what the police will gather. The more data you have, the better your chances of achieving a fair outcome.
The driver responsible for the accident should bear the costs of repairing the property damage. Even in states that do not require comprehensive liability, the driver deemed responsible for the accident may bear some costs, but you may need collision insurance coverage to cover the remaining expenses. If you live in a state that does not require comprehensive liability, you should check with your insurance management to determine whether you need collision insurance coverage to repair a car damaged by someone else. In this case, coverage is provided by the insurance company covering the vehicle, not by the driver of the car.
If you cause damage to someone else’s property using your own vehicle, the standard deductible will not apply to repairs for the damages caused by your vehicle, but if your car is damaged at the same time, you should pay your collision deductible to repair it. If another driver causes damage to your property, you will be able to file a claim with their insurance company and will not have to pay a deductible.
Once a report is filed with the police and liability is determined, the insurance company will send an investigator to review the case and damages. For example, if you are responsible for going off the road and hitting someone else’s fence or mailbox, the investigator will review the facts of the case before compensating you.
The time it takes to process claims may vary. Liability must be determined, and both parties contacted by the claims department. You can expedite the claims process by ensuring your availability to speak with a claims representative.
Do I need to file a property damage compensation claim?
If your property has been damaged and you do not know who is responsible for it, the process of filing a report with the insurance company becomes more complicated and turns the claim from a property damage compensation claim to a collision claim. You will have to pay your collision deductible out of pocket. If you do not have collision insurance coverage, the insurance company will not pay compensation. Some drivers also have “property damage liability from an uninsured driver” coverage which can cover this type of accident.
Since some types of property damage compensation claims can affect your insurance rates, you may want to read your insurance policy carefully and weigh your options before deciding to file a claim.
Uninsured Motorist Coverage
The Insurance Research Council estimates that one in eight drivers in the United States is uninsured. However, only 22 states require uninsured motorist coverage. Drivers in other states have the option to purchase this type of policy. This type of insurance provides coverage if someone’s vehicle hits your car and does not have car insurance. This type of insurance may also provide coverage for hit-and-run accidents, although some states require you to have collision insurance for such an accident.
In states that do not require this type of coverage, most leave it to insurance companies to decide whether to offer it or not. A deductible may apply to this type of coverage, depending on how your policy is structured.
If you live in a state that does not require this type of coverage, it is best to review the offerings and rates of your insurance company. This will help you determine whether it’s appropriate to add this type of coverage or not.
Source:
https://www.thebalancemoney.com/what-is-a-property-damage-claim-527109
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