May 11, 2015

Summary: Motorized golf carts are their own special type of property. Not really an automobile, but not normal personal property or yard equipment, they are in a class of their own. Therefore, an inland marine form is the best way to provide coverage. ISO form PM 00 33 is designed to provide coverage for motorized golf carts and their trailers.

Topics covered:

Introduction

Covered property

Newly acquired or replacement property

Borrowed or rented

Property not covered

Perils

Deductible and loss conditions

Other conditions

Introduction

Motorized golf carts fall into a no man's land of insurance. Not being automobiles, they do not fit on the auto policy, but not being true yard equipment, they cannot be treated as personal property like a lawn mower. They travel on roads on occasion, which causes problems since they are not registered for road use. The homeowners form provides some coverage, but it is very specific and under only certain circumstances, such as servicing the residence premises, as long as that is its sole purpose. Many homeowners with large properties use a golf cart just to get around the yard, and aren't necessarily servicing the property. Others live in retirement communities and take the cart over to visit the neighbors or to get the mail. The liability exception that covers golf carts covers them only when on a golfing facility or to cross public roads while at the facility or in a private residential community under the authority of a property owners association and contains the insured's residence. There are a lot of gaps not covered that warrants special coverage.

Covered Property