Describe "property damage liability" coverage.

Property damage liability coverage is a type of insurance that provides financial protection for the insured when they are responsible for causing damage to someone else's property. This can occur during an auto accident where the insured's vehicle damages another person's car, fence, or any other property. The coverage pays for the repair or replacement costs associated with that damage, thus protecting the insured from having to pay out of pocket.

This type of insurance is crucial because it helps ensure that individuals can fulfill their financial obligations if they are determined to be at fault for an incident causing property damage. It not only safeguards the insured's finances but also helps to maintain a sense of accountability in road usage and property interactions.

The other choices do not accurately describe property damage liability coverage. For example, coverage for injuries sustained by the insured is typically referred to as personal injury protection or bodily injury liability, which addresses the medical expenses of the injured party rather than property damage. Similarly, coverage that encompasses losses from theft pertains to property insurance, and coverage for home-based business operations relates to business insurance rather than liability for damaged property.