Generally, liability policies do NOT cover damage caused to which of the following?

Liability policies typically do not cover damage caused to the insured’s own property. This is grounded in the fundamental purpose of liability insurance, which is to provide protection against claims arising from injuries or damages that the insured may cause to third parties or their property. In this context, the insured refers to the individual or entity that holds the insurance policy.

Since the insured is protecting against financial loss from their liability to others, the coverage does not extend to their own losses or damages. For example, if a person accidentally damages their own car, their liability insurance would not provide compensation for that damage because it does not cover expenses or losses sustained by the insured themselves. Instead, the insured would need a different type of policy, such as property insurance, to cover their own property.

Understanding this distinction is crucial for recognizing how liability insurance functions within the broader context of risk management and insurance coverage.