Summary
- A property damage lawyer files claims against a party who damaged property
- They also represent claimants with property insurers
- A property damage attorney provides legal experience in damage claims
Property Damage Causes
A property owner can pursue claims for many forms of property damage. Some common causes of property damage include the following:
- Natural disasters, such as tornadoes, that cause death and destruction
- Accidents, like fires or car collisions
- Deliberate acts, such as arson or vandalism
- Wear and tear, like a burst water pipe
In many cases, the damaged property was insured. Additionally, the property owner may have a claim against anyone who contributed to the cause of the damage.
The Role of Property Insurance
Property insurance comes in two types. Casualty insurance pays the property owner when a covered event damages or destroys the insured property. Examples of casualty insurance include the following:
- Homeowners’ insurance
- Flood insurance
- Personal property insurance
- Collision and comprehensive coverage in an auto insurance policy
Liability insurance pays a third party after a party covered by the policy damages their property. For example, property damage liability insurance pays to repair or replace an accident victim’s car when the policyholder or their family member crashes into it.
Benefits under these policies are paid based on two types of claims. First-party claims happen when the insured files a claim with their own insurer. For example, a homeowner files a first-party claim with their homeowner’s insurance provider after their house burns down.
Third-party claims happen when a victim files a property damage liability claim with the at-fault party’s insurer. Thus, a customer would file a third-party claim with a tree trimming company’s liability insurer after a tree falls on the customer’s car.
Property insurance is priced based on the risks to the property. Insurers have teams of statisticians who calculate premiums based on measurable risks. For example, an auto owner’s car insurance might go up even without an accident if they receive a speeding ticket.
How a Property Damage Lawyer Can Help
Most property cases involve an insurance policy. Insurers do not pay claims easily, whether they involve a first-party or third-party claim. Part of the explanation is legal. The insurer must ensure the claim falls within the scope of the policy before paying it.
However, another explanation is commercial. Insurers do not make money by paying claims. The more frustration they can cause, the better the chances that the claimant will either drop the claim or settle for a low amount.
The legal process and the help a lawyer can provide will depend on the property, how it was damaged, and whether it was insured.
Third-Party Claim Against an Uninsured Party
When you have a property damage claim against an uninsured party, you need a creative lawyer who can identify all possible sources of compensation. For example, suppose an uninsured motorist hit your car. Although this situation might seem hopeless, you have three possible sources of compensation:
- Uninsured motorist insurance, which pays when an uninsured driver hits you
- Collision coverage, which pays any time a driver hits your car
- A lawsuit against the uninsured driver
A property damage liability lawyer can review your insurance coverage and determine if your auto policy includes uninsured motorist or collision coverage. If it does not, your only option will be to authorize a lawsuit against the other driver.
To win a property damage claim against the other driver for the cost of repairing or replacing your car, a personal property damage lawyer must prove the other driver was negligent in causing the collision.
Third-Party Claim Against an Insured Party
When the other party has insurance, your attorney will start with an insurance claim. The insurance claim describes what happened and why the insured party is liable for the loss.
For example, suppose that a truck driver hit and destroyed a shipper’s loading dock. The shipper’s industrial property damage attorneys will file a claim with the trucking company’s insurer asserting that the driver was negligent in causing the damage.
First-Party Claim With the Property Owner’s Insurer
Claimants often file first-party claims on their own after a covered event like a fire or storm. They only hire a residential property damage lawyer or office building property damage lawyer after the insurer denies the claim.
For example, the most costly disasters in U.S. history for insurers were hurricanes and earthquakes. After these disasters, insurers may go out of business after being overwhelmed by claims. A commercial or home property damage lawyer can fight the insurer to get the compensation required by the policy.
For smaller-scale losses, the policyholder’s insurer may deny coverage. Some common grounds for claim denials include:
- The loss did not occur in a covered event
- The property was not included in the policy
- The claimed loss is more than the policy limit
For example, property insurance will typically not fully cover the loss of valuables unless you identify them in the policy. Thus, collector’s items, antiques, and art might only be covered if you take out a special property damage policy or have your insurer include an amendment, called a rider, to cover them.
Contact ConsumerShield for Help Finding a Property Damage Lawyer
It can be difficult to find a property damage lawyer because their practices intersect with many areas. ConsumerShield can help you untangle the terms lawyers use to describe their practices and refer you to a lawyer for representation. Contact us for a free case evaluation.
