Does Homeowners Insurance Cover Car Damage?

Property damage can arise from various events, impacting homes, personal belongings, and vehicles. Understanding how different insurance policies respond to such damage can be complex, as each type of insurance policy is designed to cover specific risks and assets. This article explores insurance coverage for vehicle damage, distinguishing between auto and homeowners policies.

Understanding Auto Insurance for Vehicle Damage

Auto insurance provides specialized protection for vehicles through different coverage types. Collision coverage helps pay for damage to a policyholder’s car resulting from an accident with another vehicle or object, regardless of who is at fault. This coverage typically reimburses repair costs minus a deductible, which is the out-of-pocket amount the policyholder pays before the insurance coverage begins.

Comprehensive coverage protects against damage to a vehicle from non-collision events. These events include incidents such as theft, vandalism, fire, natural disasters like floods or hail, and damage from falling objects. It also covers damage caused by civil disturbances or contact with animals. While collision and comprehensive coverages are often optional, lenders typically require them for financed or leased vehicles.

When Homeowners Insurance May Apply to Vehicle Damage

Homeowners insurance is primarily designed to protect the dwelling and personal property within or associated with the home. Its application to vehicle damage is limited and specific.

Homeowners Liability Coverage

Homeowners liability coverage can apply if the policyholder is found legally responsible for damage to another person’s vehicle that occurs on or originates from their property. For instance, if a tree from the policyholder’s yard falls and damages a neighbor’s parked car, and it can be proven that the policyholder was negligent, their homeowners liability coverage might help pay for the repairs. This coverage extends to legal costs and settlements if a lawsuit arises. This coverage is for damage to another person’s vehicle, not the policyholder’s own.

Limited Personal Property Coverage

In specific scenarios, a homeowners policy might offer limited coverage for damage to a policyholder’s own vehicle. For example, if an antique or collectible car is stored inside an attached garage and is damaged by a covered peril like fire originating from the dwelling, some homeowners policies might extend coverage, especially with an endorsement. However, auto comprehensive coverage is almost always the primary and more appropriate source for claiming vehicle damage. Homeowners policies generally exclude vehicles, as they have their own specialized insurance forms.

Theft of Personal Property from a Vehicle

While a homeowners policy generally does not cover the vehicle itself, it can provide coverage for personal belongings stolen from a vehicle, even if the theft occurs away from the insured property. This falls under the personal property section of the homeowners policy. For example, if a laptop or golf clubs are stolen from a car, the homeowners policy may reimburse the loss, subject to policy limits and deductibles. There are often specific sub-limits for certain high-value items like jewelry or electronics, and off-premises coverage might be capped at a percentage of the total personal property coverage.

Instances Homeowners Insurance Does Not Cover Vehicle Damage

Homeowners insurance policies are designed for the dwelling and personal property within the home, and they typically exclude coverage for motor vehicles. This is because vehicles have their own dedicated auto insurance policies tailored to their unique risks.

Homeowners insurance will not cover damage to a vehicle resulting from a collision, whether it involves another car or an object. These types of incidents are exclusively covered by collision insurance under an auto policy. Similarly, the theft of an entire vehicle is not covered by a homeowners policy; this peril falls under comprehensive auto insurance.

Damage to a vehicle from general vandalism or other events not directly caused by a covered peril originating from the property is also typically excluded. For instance, if a car is vandalized while parked on the street, the damage would usually require comprehensive auto insurance. Furthermore, damage to a vehicle caused by natural disasters like hail or floods is generally covered by auto comprehensive coverage, not by homeowners insurance.

Steps to Take After Vehicle Damage Occurs

When vehicle damage occurs, ensure safety and contact emergency services if necessary. Document the damage thoroughly by taking photos and videos, and obtain a police report if the damage involves a collision or other identifiable cause.

For any damage to your vehicle, contact your auto insurance provider first. Your auto insurer will guide you through their claims process, which typically involves reviewing your policy, assessing the damage, and determining the appropriate coverage under your collision or comprehensive policy. They will likely assign an adjuster to evaluate the damage and provide an estimate for repairs.

In situations where the damage involves another person’s vehicle on your property, or if personal belongings were stolen from your car, contact your homeowners insurer. You would discuss potential liability coverage for damage to a third party’s vehicle or file a claim for stolen personal items. Providing both insurers with all requested documentation, such as police reports, photos, and repair estimates, is important.