Calculating Property Damage in Claims

In Arizona, you must provide proof of your property losses when trying to recover the ‘actual cost value’ of repairing or replacing damaged cars, homes, and other property from an at-fault party. Evidence is necessary whether the damage was caused by an accident, negligence, or intentional behavior.

The size of a potential property damage award can be estimated by using our online personal injury settlement calculator, although the role of fault in calculating damages will factor into negotiations.

How Insurers Calculate Damage

For damaged cars, insurers will look at the cost of repairing the vehicle using local labor and less-expensive parts from companies that make unbranded parts (rather than the manufacturer) and then adding the cost of renting a car while the vehicle is being repaired. If the cost of the repair is more than 75% to 80% of the car’s pre-accident value, it’s declared a total loss, and the insurer will pay to replace it with a similar vehicle.

When fences, mailboxes, electronics, buildings, and other personal belongings are damaged, the property owner can make a claim for repair or replacement of these items. Arizona also uses a pure comparative fault system to determine how much a person gets paid for property damage.

This means that if it’s determined that you are 20% responsible for the damage, the amount you receive from a claim is reduced by your share of fault (or 20%, in this case). If the damage to a car cost $10,000 to repair but the driver was 70% responsible for the accident because they were speeding, they would only receive $3,000 in compensation for property damage. The same rationale and percentage faults would be used in calculating future lost earnings for settlements.

Where Does Settlement Money Come From?

In Arizona, drivers are required to have insurance that includes a minimum of $15,000 per accident for property damage. Homeowners and property owners also have insurance covering damage, although the terms and amounts can vary tremendously.

The insurance company pays for property losses up to the limit of the policy. If the insurance policy is not enough to cover all damages, the party that suffered the loss can file a civil suit against the person who caused the damage for any shortfalls.

In Arizona, the person who experienced property loss has two years from the time of the incident to file a claim. Once a claim is made, the insurance company also has deadlines for investigating, evaluating, and paying (or denying) the claim to ensure that they are acting in good faith. 

Don’t Go It Alone

Property damage claims can get complicated. It’s not unusual for insurance companies to lowball costs, argue that some damage was pre-existing and not their responsibility, or to try to shift blame to someone else. They may also drag their feet during negotiations to wear you down, so you accept a low offer.

This is where Gage Mathers comes in. We’ll take on insurance companies to ensure you’re adequately compensated for your losses, and we don’t get paid unless we win. Reach out today for a free consultation!

About the Author

Joseph D'Aguanno

Guided by the belief that being a highly skilled specialist in a narrow field is better than being ordinary in everything, Joseph “JD” D’Aguanno leads Arizona’s best personal injury law firm in Phoenix, AZ. Having extensive cross-training in pre-litigation negotiations and trial lawyer skills, with decades of experience, JD strives to provide clients with the most valuable legal services a personal injury lawyer can provide. Under his direction, Gage Mathers Law Group is an award-winning personal injury law firm providing aggressive representation to victims of a car accident, medical malpractice, dog bite, motorcycle accident, and other injurious events. Gage Mathers is trusted by thousands of lawyers and clients throughout the country because of their reputation for getting clients the maximum compensation they deserve.

Years of experience: Over 24 years
Bar number: 020421
Location: Phoenix, AZ
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