Does Home Buyers Insurance Cover Damage to Neighboring Property?

Around 95% of homeowners have insurance that protects them in case their property gets damaged due to a natural disaster, vandalism, or another catastrophe. But what exactly does home buyer’s insurance cover? Can it help pay for damage to your neighboring properties? Today, we’ll have a closer look at some reasons why your insurance might cover your neighbors’ homes as well as your own.

Does My Home Buyer’s Insurance Cover My Neighboring Property? 

At first glance, this might sound like an odd question. Surely, each homeowner has their own insurance policy that covers their property? But your insurance doesn’t only compensate you for damage to your home: it also contains a personal liability component that protects you in case you inadvertently damage someone else’s property. If you live close to your neighbors, situations that require you to pay for damage at their house could arise.

For instance, if a tree from your property falls on their roof or you live in a terraced home and you damage a wall, your neighbor might sue you and claim compensation for their losses. In such a situation, your insurance policy pays for the repairs to your neighbor’s home as well as yours. In that way, the insurance protects your financial assets as well as your primary residence.

When Am I Not Covered?

Sometimes, your insurance company might refuse to pay out. This is often the case if you are responsible for the damage you caused. For instance, if you intentionally harmed your neighbor or their building, you’ll have to pay for the repairs yourself. Similarly, your insurance won’t pay if you were negligent. For example, a person who failed to remove a damaged tree from their yard won’t be covered if it falls on their neighbor’s roof.

It’s also important to remember that your primary residence isn’t meant to be used as a business, so any damage caused by economic activity isn’t included. If you’d like to run a business from home, you have to get a different type of insurance. Similarly, vehicle-related incidents aren’t covered by homeowners’ insurance. Instead, you should speak to your auto insurance company.

How Much Coverage Do I Need? 

To make sure that your policy covers your neighboring property as well as yours, you’ll need to take out enough insurance. Many policies cover you for $300,000, but you can always change this if it doesn’t reflect your current needs.

Similarly, not every insurance company offers the same level of coverage, so you should always read the fine print and discuss your options with a specialist. An insurance professional can help you determine what the main risk factors are at your property, how much an incident might cost, and which policy offers you the best value for money.

If your neighboring property is damaged due to a problem at your house, your insurance company might cover the damage. But before purchasing insurance, you should always check what is and isn’t included in your policy, and you should calculate exactly how much coverage you need to protect your home and other assets. Call us now at Absolute Choice Insurance to find out more about homeowners’ insurance in Florida and to compare policies.


Why Are Prices Different for Florida Home Insurance Policies?


4 Things to Look for When Comparing Home Insurance Quotes


Need a Homeowner Insurance Company? 5 Tips for Comparing Rates


Get A Fast & FREE Home Insurance Quote