There is a certain type of coverage option that is often included in a standard homeowners insurance policy that many people are unaware of. It’s called Good Neighbor Property Damage coverage. For people who have it, and many do, it will provide excellent protection for damage to your neighbors’ home that they would be held responsible for.
How does it work? Easy. Coverage is provided for damage caused to a neighbor’s house by the felling of a tree and its destruction. Or, coverage is provided if your kids are playing ball in the front yard and a ball goes through a neighbor’s window. Surprisingly, coverage is provided even if your neighbor can prove that her children intentionally damaged your home.
Damage caused to your neighbors’ home by pets is also covered under this good neighbor property coverage. If your dog chews a hole in your fence or gets into your neighbor’s house and destroys your carpet or furniture, you’re covered.
The amount of coverage provided varies from insurance company to insurance company, but most coverage limits are between one thousand and two thousand dollars. The best part is that there is no deductible to pay when making a claim. Simply contact your insurance company and explain what happened. Sometimes you will have to pay out of pocket to repair the damage and then wait for reimbursement. Other times, the check will be sent immediately once the damage to your neighbor’s home is assessed.