What does property damage liability cover?

Property damage liability coverage is designed specifically to address losses that arise from physical damage caused by the insured to someone else's property. This coverage plays a crucial role in personal lines insurance, particularly in auto insurance policies. When an insured individual is found legally responsible for causing damage to another person's property—such as in a car accident where they hit someone else's vehicle or damage a building—they can rely on property damage liability to help cover the costs associated with repairs or replacement of the damaged property.

This form of coverage is important because it protects the financial interests of the insured in situations where they could face significant out-of-pocket expenses due to legal claims or lawsuits for property damage. It ensures that the insured does not suffer devastating financial consequences when acting responsibly in an accident scenario.

The other options focus on aspects of personal injury (both to third parties and the insured), which are typically classified under bodily injury liability, rather than property damage. Thus, they do not fall under the scope of what property damage liability is intended to cover.