What is a property liability claim?

Asked by: Dr. Justen Lind  |  Last update: February 9, 2026
Score: 4.5/5 (23 votes)

A property liability claim arises when someone is injured or their property is damaged due to an unsafe condition on another person's property, or when you cause damage to someone else's property (like in a car accident), holding the owner or at-fault party financially responsible for costs like repairs, medical bills, and legal fees, often covered by insurance. Key types include Premises Liability, where owners must keep property safe, and Property Damage Liability in auto insurance, covering damage to others' vehicles or structures.

What is the difference between a property claim and a liability claim?

Liability insurance protects you from claims involving third parties, while commercial property insurance protects your place of business and the business contents inside.

What is an example of a liability claim?

The truck causes severe property damage to the brick on the exterior of the building. Mike's Company is now liable for the damages caused to the building by his truck. Mikes liability insurance policy would protect him from these types of damages caused by his company's negligence.

What does property liability insurance cover?

It helps pay to repair damage you cause to another person's vehicle or property. 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.

What triggers a liability claim?

The injury must have been caused by negligence

In order for your injury to be eligible for public liability claims, it must have been caused by negligence. This means that the person who caused your injury must have failed to take reasonable care to prevent it from happening.

General Liability Insurance Explained in 10 Minutes

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How long do liability claims take?

Straightforward cases involving minor injuries and clear liability may resolve in about three to six months. More complex cases, especially those involving serious injuries, unclear liability, or uncooperative insurance companies, may take one to two years or more to settle.

What is needed to prove liability?

Proving liability in a negligence case involves four steps: (1) Proving the existence of a duty; (2) Proving a breach of that duty; (3) Proving the breach of duty caused an injury; and (4) Proving damages naturally flowing from the injury.

What is an example of property liability insurance?

For example, if a tenant's guest slips and falls in a common area, or if damage occurs to a visitor's property while on-site, property liability insurance helps cover the medical expenses, repair costs, and legal defense fees associated with the claim.

What is not covered by liability insurance?

A standard liability policy generally doesn't cover intentional acts, damage to your own property, employee injuries (needs Workers' Comp), vehicle accidents (needs Commercial Auto), professional mistakes (needs E&O Insurance), pollution, or business interruption, instead focusing on third-party bodily injury or property damage from negligence, requiring separate policies for specific risks like auto, professional errors, or employee issues. 

What are three things property damage liability can help over?

In practical terms, property damage liability covers various scenarios, such as damage to another person's vehicle, a fence, utility pole, or any other property that may be impacted during an accident.

What are the 4 types of liabilities?

Types of liabilities based on categorisation

Based on categorisation, liabilities can be classified into five types: contingent, current, non-current, common (like mortgage and student loans), and statutes (like taxes payable).

How long does a claim take once liability is accepted?

Straightforward cases where the other side admits liability may settle in as little as 4-6 months. Complex cases involving serious injuries can take two years or longer. The court will set a mandatory timetable to keep your claim moving toward a final hearing or settlement.

Do you have to pay a deductible on a liability claim?

No, standard auto liability insurance typically does not have a deductible because it covers damages you cause to others, not your own vehicle, with deductibles applying to your own vehicle's damage (collision/comprehensive); however, some specific coverages within an auto policy, like uninsured motorist property damage (UMPD), or general/professional liability policies might have deductibles, but the core liability part usually doesn't. 

What is the 80% rule in property insurance?

The 80% rule states that the policy must cover at least 80% of the property's total replacement cost, which would be the amount that it would take to rebuild the house from the ground up.

How much does a $1,000,000 liability insurance policy cost?

A $1 million liability insurance policy generally costs around $50 to $100+ per month for small businesses, averaging about $69/month or $824/year, but rates vary significantly by industry, with low-risk businesses paying less (e.g., consultants) and high-risk ones (e.g., construction, restaurants) paying much more (e.g., $200+/month), depending on your specific risk factors, location, and business size. 

What is a homeowners liability claim?

Homeowners Liability Coverage

The personal liability portion of your homeowners insurance policy covers you against lawsuits for injury or property damage that you or your family members cause to other people. It also pays for damage caused by your pets.

What is the most common liability coverage?

The most commonly required liability limits are $25,000/$50,000/$25,000, which mean: $25,000 in bodily injury per person. $50,000 in total bodily injury per accident.

What will insurance not pay for?

Most health insurance will not cover elective or cosmetic procedures, beauty treatments, off-label drug use, or brand-new technologies. If health coverage is denied, policyholders can appeal for exceptions or allowances based on an individual's situation and prognosis.

Does liability cover me if someone hits me?

This coverage can help cover the cost of damages if you are hit by an uninsured driver up to the limits of your policy. If you do not have uninsured motorist coverage, you may be responsible for paying the full cost of damages out of your own pocket.

What does property liability cover?

Property damage (PD) liability covers other parties' vehicle and property repairs when you're considered at fault in an accident — it's part of your liability coverage.

What will liability insurance not cover?

Some of the things liability coverage does not cover are obvious – it does not cover injuries to ourselves or our own medical bills for auto accidents or damage to our own vehicles either from auto accidents, weather damage, or theft.

What is the most common home insurance claim?

7 most common homeowners insurance claims

  1. Wind & hail (40.7%) ...
  2. Fire and lightning damage (21.9%) ...
  3. Water damage & freezing (27.6%) ...
  4. All other property damage (6.9%) ...
  5. Bodily injury or property damage to others (1.6%) ...
  6. Theft (0.7%) ...
  7. Medical payments and other causes (0.5%)

What is evidence of liability?

The Importance of Evidence in Liability Claims

Medical records: This includes documentation related to your injuries, such as hospital admission records, treatment plans, and doctor's notes. Medical records help demonstrate the extent of your injuries and the impact they've had on your life.

How do you prove it's not your fault?

How to Prove an Accident Wasn't Your Fault in 5 Steps

  1. Gather Evidence from the Scene. Documentation from the crash site is essential for illustrating who's at fault. ...
  2. Contact Witnesses. ...
  3. Get the Police Report. ...
  4. See a Doctor. ...
  5. Consult with an Attorney.

What are the conditions for liability?

Liability for damages caused by one's own act, of the entire tort liability presupposes the cumulative existence of four conditions or constituent elements: the damage, the wrongful act, the causal relationship between the wrongful act and the damage, the guilt of the perpetrator of the wrongful and prejudicial act ( ...