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Does Homeowners Insurance Cover Property Damage to a Neighbor?

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Homeowners insurance protects against property loss and damage. After threats such as storms, vandalism, and explosions, the damage might occur. In addition, your coverage protects you against theft and fire.

Under certain circumstances, however, home insurance also protects your neighbor's property in addition to your own. A policy protects your home's structure and your personal items.

If you are responsible for damages, the personal liability portion of your coverage compensates the victim. When looking for home insurance, it is essential to understand how these policies operate and to purchase adequate coverage.

Individual Liability Insurance

Your homeowner's insurance policy provides four fundamental levels of coverage.

One form of protection is home insurance. This safeguards the building and other structures on your property. Other structures include a separate garage and a shed.

You need enough dwelling coverage to reconstruct your home entirely.

Other structural coverage accounts for approximately 10% of your dwelling coverage.

Your policy also provides coverage for your personal property. This safeguards your personal property, including:

  • Furnishings
  • Electronics
  • Apparel
  • Other values

The personal property coverage is fifty to seventy percent of the housing coverage.

There is also protection against loss of use. This reimburses additional living expenses incurred if your home becomes uninhabitable. This represents 20% of residential coverage.

However, even though these locations provide extensive coverage, you are also protected in case you cause damage to someone else's property. In this situation, personal liability insurance covers a broad spectrum of potential occurrences.

As a homeowner, you do not purchase a policy to protect your residence solely. You also obtain a policy to protect your assets in case of a lawsuit.

During a strong storm, a tree on your property could fall and cause property damage to your neighbor. It could fall on their residence, garage, shed, or fence.

Even if the damage occurs on their property, you are responsible because your tree caused it.

Depending on the amount, this type of damage may cost thousands of dollars.

However, homeowners insurance provides peace of mind. Your liability coverage pays for the damages, so you aren't forced to pay for them yourself.

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