When you get into a car accident, property damage is almost inevitable. In Minnesota, a crash that only causes property damage is more likely than fatal crashes and injury crashes combined. Specifically, in 2022, the state reported 418 fatal crashes, 17,367 non-fatal injury crashes, and 52,481 property damage-only (PDO) crashes.
Property damage can happen in other accidents, too. A dog can knock your smartphone out of your hand during a dog bite. You might break your glasses in a slip and fall a flight of stairs. Thus, the principles that apply to property damage in a car crash can also apply to other claims.
Defining Property Damage
Property damage can include both functional and cosmetic damage. For example, if your phone gets damaged in a pedestrian accident, a cracked screen and a scratched case both qualify as property damage for which you can seek compensation. The extent of the damage will determine the compensation you receive.
Who Pays for Damaged Property?
Generally, you can seek property damage compensation for any damage that necessitates repair or replacement. To recover compensation, you must prove the other party acted negligently or intentionally and that their actions caused the damage.
Negligence means the other party breached a duty of care owed to you. This breach occurs when they fail to act in a reasonably prudent way.
Thus, a shop owner might be liable for your broken wrist and damaged watch when you slip and fall on an icy puddle at the store’s entrance. To prove liability, you must show the shop owner knew or should have known of the puddle and failed to mop it or post a warning sign.
Once you prove liability, you must prove two types of causation. First, the other party’s actions must be a cause-in-fact of your property damage. This means their acts or omissions naturally and logically fell within the sequence of events that damaged your property.
Second, you must prove proximate cause. This means the other person’s actions must have been the type that would foreseeably damage property.
For example, suppose that a homeowner forgot to tie down a tarp over a wood pile. The tarp flew into the road and blocked a driver’s vision. The driver crashed into a light pole, damaging their vehicle. There may be a legitimate question of whether the property damage was foreseeable in light of the homeowner’s negligence since tarps do not usually damage property.
Measuring the Value of Damaged Property
After your lawyer successfully proves liability, the at-fault party must compensate you for the property damage. When the property is damaged, the compensation is usually based on reasonable repair estimates.
Thus, suppose that you got three estimates for your damaged property, which were $1,000, $1,300, and $1,300. In this case, the higher estimates might be the most reasonable.
If a property gets destroyed, the value is usually based on its actual cash value (ACV). ACV is calculated by subtracting the depreciation from the replacement cost. Replacement cost is the value of a comparable replacement. For example, if your laptop was destroyed, a comparable replacement is a laptop with the same features currently on the market.
The depreciation takes into account the age and type of asset. Cars and electronics, for example, depreciate quickly. Real estate depreciates more slowly. Thus, a crash where someone hits your fence will not involve as much depreciation as a crash where someone hits your SUV.
The Role of Insurance
Property liability insurance pays for damage caused by a policyholder or another covered party. Homeowner liability insurance will often cover the property damage negligently caused by the homeowner or anyone in their family. If the homeowner’s tree falls onto the neighbor’s car and damages it, their homeowner’s insurance will typically pay to repair the car.
One important form of property damage insurance is the property damage liability (PDL) coverage in your auto policy. Most states require PDL, with only New Hampshire allowing drivers to operate without this coverage.
When you get hit by another driver, you can receive compensation for your injuries and property damage if you and your lawyer prove their negligence. The insurer will pay up to the policy limits, and the at-fault driver must pay for any losses over the policy limits. In Minnesota, drivers must buy at least $10,000 in PDL coverage.
You can also insure against property damage and destruction through your auto insurance policy. Collision coverage pays you for losses that result from a single-vehicle or multi-vehicle crash, while comprehensive coverage pays you for all other losses, like storm damage, vandalism, or theft. These benefits get paid regardless of fault.
Contact a Lawyer for Help With Your Property Damage Claim
When you suffer property damage and injuries, a single lawyer will often handle all your claims, which simplifies the process for you. To discuss your property losses and compensation, contact our personal injury lawyers at Hall Law Personal Injury Attorneys. Call us at (800) 292-1979.
