Dead Storage

August 2, 2012

The insured policyholder had a 1933 vintage hot rod car in dead storage inside his dwelling's garage when a total loss fire occurred to his dwelling. The fire damaged the car. The car was up on blocks, the engine didn't run, and the car was NOT registered with the state as an operable licensed vehicle.  The policyholder is inquiring if the car is still considered to be a “motor vehicle” that could be excluded under his homeowner's policy, since the policy states “Property Not Covered:  We do not cover: motor vehicles or all other motorized land conveyances”?  Or, because it is in “dead storage” and not drivable does that fact change its classification to being NOT a “motor vehicle” and instead being other covered personal property, such as an art piece?

 

Kentucky Subscriber

The ISO standard homeowners form defines a motor vehicle as a self-propelled land or amphibious vehicle. Under property not covered motor vehicles including equipment and parts are excluded. Since the vehicle is an assembly of parts and this vehicle is missing some, it would be excluded. The exception for vehicles not required to be registered on public roads applies only to vehicles that are used solely to service a residence or are designed to assist the handicapped. Your policy has different wording so you want to check the policy definition of motor vehicle and then take a careful look at the exclusions and exceptions. The motor on the vehicle or motorized land conveyance does not have to be operational.

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