Mobile Equipment as Covered Property

Our insured is a church that owns a riding lawnmower, valued at $3500. The custodian takes the mower home with him on his pickup after using it at the church. Because of local code, the mower cannot be stored in an occupied building. The custodian loaded the tractor on his pickup to bring back to the church, but in pulling out of his property a low-hanging power line caught the mower and pulled it off the pickup. It was damaged when it hit the ground. The carrier is denying the claim based on the mower's being "mobile equipment."

Frankly, it just doesn't seem that the definition should be applied to something like a riding mower used to service the church premises. What is your take on this?

North Carolina Subscriber

We believe the adjuster is misreading the "Property Not Covered" mobile equipment preclusion of coverage. We agree that the riding lawnmower is mobile equipment based on the policy's definition, which includes "vehicles maintained for use solely on or next to premises you own or rent." The policy states that "Property Not Covered" includes mobile equipment "while being used or stored away from the premises described in the 'Declarations'; or while at or being transported to or from job sites away from the premises described in the 'Declarations'."

However, the lawnmower was not being stored at or used away from the described premises, nor was it being transported to or from job sites away from the premises. Rather, the mower was being transported back to the premises, so it is covered property.

The policy gives up to $25,000 coverage for loss to business personal property in or on a vehicle operated by or for the named insured if the loss is caused by collision. In this situation, the mower, secured to the pickup, collided with the wire and consequently was damaged in its fall. We therefore think the loss is covered.

This premium content is locked for FC&S Coverage Interpretation Subscribers

Enjoy unlimited access to the trusted solution for successful interpretation and analyses of complex insurance policies.

  • Quality content from industry experts with over 60 years insurance experience, combined
  • Customizable alerts of changes in relevant policies and trends
  • Search and navigate Q&As to find answers to your specific questions
  • Filter by article, discussion, analysis and more to find the exact information you’re looking for
  • Continually updated to bring you the latest reports, trending topics, and coverage analysis