Off Premises Coverage for Backhoes and Other Such Vehicles

We are concerned about coverage under ISO homeowner forms for “motor vehicles” that could include bobcats, large tractors, forklifts, backhoes, golf carts, recreational vehicles, etc. Our understanding is that if any of these types of vehicles are used solely to service the insured's premises & are not required to be registered for use on public roads, the homeowner policy would give both property (even if values were very high) & liability coverage so long as the claim arose while the vehicles were on the insured premises. Do you agree with us? Would you comment on a claim arising off premises for these vehicles where we are sure there would be a problem especially if the vehicle was a recreational type, even if used solely for upkeep of premises? In your comments if you could include thoughts on a large tractor, bobcat or backhoe which were generally used solely for upkeep of premises but were off premises for whatever reasons including to maybe help a neighbor or insured's church out?

Kentucky Subscriber

The policy means what it says literally; if the bobcat/backhoe/tractor is off premises, then it's not covered for physical damage coverage since it wasn't servicing the property. The 1991 policy left this unclear, but the 2000 policy makes it plain that coverage is only for equipment used to service the resident's property, period. Being a good neighbor is not servicing the residence premises. The same applies for liability coverage; solely to service the insured's premises is just that, and unless the equipment is being used to assist a handicapped person, there's no coverage for mowing the neighbor's yard, using the backhoe to help bury the Great Dane, etc. The homeowners policy is just that, designed to handle home issues. If the insured wants further coverage for such equipment, he needs to look to the auto policy and the miscellaneous vehicles endorsement PP 03 23 01 05 or to the inland marine forms for ground maintenance vehicles.

 

 

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