What is meant by "Property Damage" in insurance terms?

In insurance terms, "Property Damage" specifically refers to physical damage to tangible property that belongs to another party. This definition is crucial within the context of liability insurance, where one party's actions can result in unintentional harm to someone else's physical property. It covers the costs incurred to repair or replace the damaged property, thereby providing financial protection to the policyholder from claims made by third parties regarding their property.

Understanding this definition is essential, especially for insurance professionals, as it helps in determining coverage limits, exclusions, and the scope of liability in various scenarios. Tangible property encompasses physical items like buildings, vehicles, equipment, and personal belongings, distinguishing it from intangible assets such as intellectual property or goodwill. Therefore, when discussing "Property Damage," the focus is on the direct physical impairment of someone else's property, setting the stage for potential insurance claims.