Property Damage That Is Not Covered By No-Fault Insurance
Attorney Commentary on No-Fault Statute: MCL 500.3123
Property protection insurance; property excluded: territorial limitation
There are certain situations where property protection insurance benefits (PPI) are not available to compensate an individual for property damage that occurred because of a motor vehicle accident such as a car or truck accident. Those situations include the following:
Parked Vehicles that Cause “Unreasonable Risk of Damage”
A vehicle must be parked in a safe manner in order for PPI benefits to be available. If a vehicle is “parked in a manner” that causes “unreasonable risk of the damage that occurred,” the No-Fault insurer is not obligated to pay PPI benefits. This exclusion extends beyond motor vehicles to trailers and the contents of trailers as well.
Property Damage Caused by Members of Claimant’s Household
If damage to an individual’s vehicle is caused by the individual, the person’s spouse or relative that lives in the same household, PPI benefits are not available. For example, in one well-known case, a man’s house was damaged when an automobile owned and insured by his son caught on fire while it was being repaired in the man’s garage. The Michigan Court of Appeals decided that the “household exclusion” prevented the man from receiving PPI benefits from his insurer. (American States v. DAIIE, (1982))
PPI benefits are not available “for property damage arising from motor vehicle accidents occurring outside the state” of Michigan.
This exclusion also applies to rental cars. If a Michigan resident rents a car which is damaged in a motor vehicle accident, his No-Fault insurer does not have to pay PPI benefits
Damage to Utility Lines, Wires and Cables
If a motor vehicle causes property damage to equipment like “utility transmission lines, wires or cables” and the damage occurs because the owner of the equipment, such as a cable company, did not maintain it properly according to Michigan law, then PPI benefits are not available to compensate for this damage.
No-Fault Insurance Attorneys of Michigan Auto Law
The lawyers of Michigan Auto Law have been specializing in automobile No-Fault litigation for more than 50 years. If you have been injured in a car, truck or motorcycle accident and need help navigating through your No-Fault insurance, please call one of our experienced attorneys for a free case evaluation at (800) 777-0028 or fill out our consultation form. There is no fee or obligation.
We are here to help you.