Our insured sells sports collectibles and memorabilia, and has a commercial package policy providing property and liability coverage for his store. He planned to sell his merchandise at the Super Bowl.
When he arrived at the stadium, his truck loaded with merchandise, he was told he could not set up his booth until the next day. He checked into a motel, and parked the truck in the motel parking lot. Sometime during the night the truck was broken into, and his property stolen.
The policy has a “personal property at other locations” extension, wherein coverage is given for personal property that is at any premises more than 1000 feet from the described premises. Coverage is excluded while the property is “in the course of transportation.” There is coverage for “personal property in transit,” but with a substantially lower limit.
The insurer has offered to pay the claim as “personal property in transit.” Their reasoning is that the property was stolen from a truck and a truck cannot be another location. We believe that the property was constructively at its final destination, i.e., no longer in the course of transportation, and therefore the “property at other locations” applies.
Pennsylvania Subscriber
Since there is a greater exposure for property being transported, the ISO form limits coverage for property off premises by specifically stating the coverage does not apply to covered property “in or on a vehicle.” Your policy appears to have broadened this to include the concept of “property in transit” and gives limited coverage.
However, it could be argued that, having reached the city which was the final destination, the property was no longer “in transit” and the full amount of coverage for property at other locations should apply. In this instance, the property's being in a truck is immaterial, since the property can be at “any premises.” The motel in this case is “any premises.”
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