Accidents can result in serious property damage. This type of damage includes harm to both personal property and real property. Personal property refers to items like your vehicle and any belongings inside it, such as a laptop or cell phone. Real property refers to real estate and the structures attached to it, including buildings, fences, or mailboxes.
Property damage can occur because of an accident, intentional torts, or Acts of God. Insurance policies may cover property damage, depending on the policy terms.
What Is the Value of a Property Damage Claim?
An insurance adjuster investigates the claim for the insurance company. If the adjuster determines that the insured caused the accident, they determine the value of the property damage claim.
The adjuster may advise you to obtain a repair estimate to determine the cost of repairs. If the adjuster determines the value of the repairs without an estimate, obtaining an independent written estimate is wise.
You want to ensure the insurance company pays for all repairs. You can also request that they use new parts instead of used or aftermarket parts.
If the cost of repairs exceeds the value of the property, the insurance company may be required to pay the fair market value for a total loss.
Several factors determine fair market value, including:
- The year, make, and model of the vehicle
- The vehicle’s mileage at the time of the accident
- The condition of the property before the accident
- Whether your property had special equipment or modifications
- The market demand for the type of property
- The geographic location of the vehicle or other property
The insurance company may use the market value of a similar item and then depreciate the value based on the specific condition before the accident. If you want to know how much your property is worth, you can check online or talk to an appraiser. For vehicles with special equipment or that are an expensive make and model, it is wise to talk to a dealer to obtain an accurate value for negotiations.
How Do Texas Car Insurance Requirements Impact Property Damage Claims
Texas requires drivers to purchase minimum liability insurance for car accidents.
Minimum limits are:
- $30,000 for injury to one person
- $60,000 for injury per accident
- $25,000 for property damage
Liability insurance pays an accident victim for damages when you cause an accident. Therefore, if you cause a car crash, your insurance company could be liable for a property damage claim of up to $25,000.
A driver may also purchase collision coverage.
Collision insurance pays to repair or replace your vehicle if you:
- Are in a collision with another car
- Collide with an object, such as a tree or fence
- Are in a single-car accident
Comprehensive insurance is another optional insurance for property damage. It pays for damage to your vehicle from fire, theft, flood, vandalism, or other covered hazards.
It is important to note that the insurance company is only liable up to the policy limits. Therefore, if a driver causes your accident and has minimum insurance, the most the insurance company pays for property damage is $25,000. If your car has more damage or is worth more, you may need to sue the other driver to hold them liable for damages over the policy limits.
Damages Included in a Property Damage Claim
Your property damage claim may include various damages. For example, you may recover compensation for the loss of use of your property while it is being repaired or through the date the insurance company pays you for a total loss.
You may also receive compensation for the diminished value of your property. Even though your property may look new, it may lose value due to the accident.
When you sell your property, the buyer will likely make a lower offer because of the accident history. For example, diminished value is the difference between what your car would be worth without repairs and what your car is worth with the repairs.
What Is the Statute of Limitations for Property Damage Claims in Texas?
Most Texas property damage claims have a two-year statute of limitations. The time begins with the accident date. You could lose your right to pursue a property damage claim if you do not file a lawsuit before the time expires.
Exceptions to the statute of limitations could lengthen or shorten the time to file a lawsuit. It is best to speak with an attorney as soon as possible to avoid missing a deadline.
Schedule a Free Consultation With Our Personal Injury Lawyers
Accidents can result in significant property damage, personal injury, and financial hardship. You deserve to be compensated fairly for your losses. Call Benton Accident & Injury Lawyers at (214) 556-8321 to schedule a free case evaluation with an experienced Dallas personal injury lawyer.