Question

While hurriedly backing out of his driveway, Brayden accidentally crashes into his own brick mailbox and destroys it. Brayden knows his auto liability insurance won't cover damage that he causes to his own property; but, he is hoping his excess liability policy will cover the damages to the mailbox. Brayden will be disappointed to learn that the damage is not covered, because:

Option 1: Excess liability policies exclude coverage for damage to personal property.
Option 2: Brayden did not report the incident to the insurance company promptly.
Option 3: Auto liability insurance policies always cover damage to the insured's property.
Option 4: The damage was caused by Brayden's intentional act.

Answer 1

An excess liability policy, also known as an umbrella policy, provides additional liability coverage beyond the limits of your primary insurance policy. However, these policies typically exclude coverage for damage to personal property, including damage to your own property. Correct option is 1.

Step-by-step explanation:

The answer to the question is Option 1: Excess liability policies exclude coverage for damage to personal property.

An excess liability policy, also known as an umbrella policy, provides additional liability coverage beyond the limits of your primary insurance policy. However, these policies typically exclude coverage for damage to personal property, including damage to your own property. Brayden's excess liability policy will not cover the damages to his mailbox because it falls under damage to personal property.

Option 2 is not relevant to Brayden's situation as it does not affect whether the damage is covered or not. Option 3 is incorrect because auto liability insurance policies do not always cover damage to the insured's property. Option 4 is also not applicable in this case because the damage was accidental, not intentional.