Newly Acquired Trailer

March 4, 2014

We have an insured that purchased a brand new utility trailer. Forty-five minutes after leaving the dealership, there is an accident, and the trailer is totaled. The insured had not had time to contact his agent to add the new trailer. The vehicles on his personal auto policy have full coverage. No trailers have been listed on the policy prior to this purchase.

The "newly acquired trailer" definition will not apply in this case, correct? And, technically the carrier can deny coverage, correct? Please advise.

Vermont Subscriber

The definition of "your covered auto" includes any trailer that the named insured owns. And so, even though the insured did not have time to contact the agent, he did own the trailer and by definition, the trailer is a covered auto for physical damage coverage. Now, there is an exclusion for loss to a trailer not shown in the dec page, but there is an exception to that exclusion for trailers that the named insured acquires during the policy period and this extends for 14 days after the named insured becomes the owner. So, there is no reason to deny coverage unless the facts of the incident include some other exclusion.

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