TABLE OF CONTENTS
Property Protection Insurance (PPI) is a type of liability coverage that kicks in when a driver is at fault in an incident and damages another person’s property. All Michigan drivers are required to carry PPI worth $1 million and cannot get license plates on a vehicle without that coverage. Basically, this PPI coverage protects drivers under certain circumstance when they damage another person’s property with their vehicle. Here’s everything you need to know.
An overview of Property Protection Insurance (PPI)
Under Michigan’s No-Fault Law, updated for policies issued on or before July 2, 2020, all driver’s must carry $1 million in Property Protection Insurance (PPI). The purpose of such insurance is to cover damages to property and parked vehicles that is caused by a driver’s car or truck. PPI is part of a basic no-fault policy that also includes personal injury protection (PIP) to cover bodily injury expenses and residual liability insurance to cover select litigation fees resulting from an accident.
With PPI, it does not matter who is at fault. This insurance also covers the entire family associated with the policy. So, if a teenage child were driving a parent’s vehicle, the coverage extends to the teen. The PPI policy provides protections to all individuals within the same household as the policy account holder.
What does Property Protection Insurance (PPI) cover?
PPI provides coverage in the event that the policy holder’s vehicle causes property damage to some unmoving objects, including parked cars. The following types of property are included in PPI:
- Legally parked cars, their contents, and trailers
- Structures like houses or sheds
The following types of property are not covered by PPI:
- Driver’s vehicle
- Illegally parked cars, their contents, and trailers
- Utility lines, wires, or cables downed by failure of utility company
One way to decide if a property is included under Property Protection Insurance is to ask the following three questions:
- Does the damaged property belong to someone other than the driver?
- Was the damaged property in its location in a proper manner?
- Did the damaging incident occur in the state of Michigan?
If all three of those questions can be answered with a “yes,” then it is likely covered with PPI.
Filing a Personal Protection Insurance (PIP) claim
In the event that your property is damaged by another person’s vehicle, you need to obtain insurance information from the owner or driver of the vehicle on the double. You do not want to rely on potential witnesses and investigators to determine who is responsible for the damage and which insurance company is involved. Ideally, write down the offending driver’s name, telephone number, and insurance policy number.
Contact the insurance company that covers the vehicle that caused the property damage. Tell the company you need to file a Property Protection Insurance claim. The agent or claims adjuster you ultimately speak with can guide you through the specific claims filing process, as that person knows all about Property Protection Insurance (PPI) through their company.
Do not hesitate in filing a claim. Property owners may not seek restitution for damages in this manner if the claim is filed more than one year after the damaging incident. There’s also a risk that important evidence or contact with key witnesses could be lost. In such an event, the property owner who sustained the damages may be left holding the proverbial bag to pay for replacements or repairs.