What is Physical Damage?
Physical damage is the actual destruction, denting, or harm caused to property, such as a vehicle, building, or equipment, typically due to accidents, weather events, vandalism, or other external forces. In the context of personal and business insurance, physical damage is often included in policies covering automobiles, homes, and commercial properties.
For example, in car insurance, physical damage coverage can protect against incidents like a car accident or damage caused by falling objects. It usually includes both collision (damage from crashes) and comprehensive (damage from non-collision events like theft or storms) insurance options.
For property insurance, physical damage can range from minor repairs, like fixing broken windows or damaged walls, to major incidents, like fire or flood damage. Having physical damage coverage helps policyholders recover repair or replacement costs, ensuring that the financial burden of fixing damaged property is minimized.
It’s essential to understand the types of physical damage covered under your policy, as some events, such as wear and tear or intentional damage, may not be included in the coverage.