What is voluntary property damage coverage?

Not only will home insurance help pay to rebuild your home and replace its contents, it will shield you if you accidentally damage someone else's property. This coverage is listed as 'voluntary property damage' in your policy, and it's useful because it can avert unnecessary legal expenses.

Voluntary property damage covers unintentional loss or damage that you or a person in your household causes to someone else's property that you are not legally liable for, and it’s included in most home insurance policies. It also covers unintentional and intentional damage caused by a minor (under 12-years-old) in your care.

Most insurance companies in Ontario set their maximum limit for voluntary property damage at $1,000 for each occurrence; however, this may vary according to insurer and policy.

Your insurer will pay for repairs or a replacement item while factoring in depreciation. You don't have to pay a deductible to use your voluntary property damage coverage.

In addition to voluntary property coverage, home insurance provides third-party liability protection, which you can claim when someone hurts themselves on your property and sues for damages. Some of the most common causes for lawsuits that call for third-party liability insurance include animal bites, swimming accidents, injuries stemming from overconsumption of alcohol, and slips and falls from icy, cluttered, or unstable surfaces. Insurance experts recommend carrying at least $1 million in liability coverage.

Another type of liability insurance you'll find in your policy is 'voluntary medical payments.' If someone hurts themselves on your property, this coverage pays for their medical expenses for one year after the date of the accident. What distinguishes this coverage from standard third-party liability is that you don't have to accept liability to claim voluntary medical payments coverage. The limit for voluntary medical payments is usually $5,000 per person.

Scenarios where voluntary property damage coverage might come in handy

Let’s say you and your friends are playing road hockey, and a flick of the wrist shoots the puck into the neighbour’s window. Voluntary property damage insurance would cover the damage if the damage.

Or, perhaps a tree on your property falls onto your neighbour’s house. You could draw upon voluntary property damage to help your neighbour with the cost of cleaning up.

What is the typical payout for voluntary property damage coverage?

Most insurance companies in Ontario limit settlements to $1,000 per occurrence.

Your insurer will pay for repairs or will pay to replace a broken item while factoring in depreciation. You don't have to pay a deductible to use your voluntary property damage coverage. 

Each provider is different, and limits can vary. Talk to your provider about their limits around voluntary property damage coverage.