What Is Personal Liability and Property Damage?
Personal Liability And Property Damage ( PLPD ) “PLPD” stands for Personal Liability and Property Damage, and PLPD coverage is the bare bones legal minimum coverage in a lot of states. PLPD is an important part of every drivable vehicle’s insurance coverage. Knowing what PLPD is, beyond just what it stands for, can save you a lot of confusion and hassle if you are ever in an accident.
Liability Car Insurance
Car insurance is there to protect us when the unthinkable happens. And when our own actions on the road result in an accident, that protection becomes even more vital.
Most states require drivers to purchase a minimum amount of liability coverage to protect them from financial disaster after an accident.
“Liability” means “responsibility,” and it refers to two different types of financial responsibility in an accident:
- Bodily injury – Damage done to people.
- Property damage – Damage done to vehicles or other property.
Personal liability occurs in the event an accident, in or out of your home, that results in bodily injury or property damage that you are held legally responsible for. Personal liability claims could include medical bills, legal fees and more if a guest is injured on your property, as well as coverage for accidental damage you are legally responsible for on someone else’s property. If you have personal liability coverage, you may be able to avoid paying out of pocket for incidents like these, up to your coverage limits. That’s why personal liability coverage is an important component of your homeowners insurance or renters insurance policy.
Now that you know the definition of personal liability insurance, here’s a real life example: let’s say a guest visits your home and while walking through your garage is hit by a falling ladder. The guest suffers a broken arm and sues you for damages – which can be thousands of dollars. This is where personal liability insurance can kick in. Personal liability will cover the costs of medical bills, as well as your legal defense fees, up to the limit of your liability coverage. However, personal liability coverage may also be able to cover an incident that occurs outside your home or property.
Personal Liability Key Points:
- Coverage is for the other party, not you.
- State minimum limits vary, so check with your insurance representative.
- Preferred limits are 100,000/300,000.
The term property damage has a specific meaning in general liability, commercial auto, and umbrella policies that is explained in the definitions section. These policies typically define property damage in the same manner as the standard ISO general liability policy.
Example: David hits a patch of ice and slides into a parked vehicle on the side of the road. Damage to the parked vehicle will be covered under the property damage coverage on his car insurance policy. The vehicle will be repaired with no deductible.
Property Damage Key Points:
- Covers property to others damaged by your vehicle
- State minimum limits vary, check with your insurance representative.
- Standard limit 100,000
- Additional Coverage (not for all states)
- Mini Tort or Limited Property Damage
- Personal Injury Protection