Homeowner Motorized Vehicle Exclusions

Exclusions That Apply To Liability Coverages

1. Exclusions That Apply To Coverages L (Personal Liability) and M (Medical Payments to Others)

This policy does not apply to:

b. bodily injury or property damage resulting from an insured owning or leasing an aircraft or hovercraft. There is also no coverage for any person who operates, maintains, uses, occupies, loads, or unloads an aircraft or hovercraft. In addition, if an insured entrusts or loans a hovercraft or aircraft to a person, there is no coverage. Finally, there is no coverage for the insured’s negligence or nonexistent supervision of a person with respect to an aircraft or hovercraft. This exclusion does not apply to bodily injury that may occur to a domestic employee of the insured if the injury occurs in the course of that employee’s duties.

Remember that based on the definition of aircraft and hovercraft, models are covered provided they are not designed to carry cargo or people.

c. bodily injury or property damage resulting from an insured owning or leasing a motorized vehicle or watercraft. There is also no coverage for any person who operates, maintains, uses, occupies, loads, or unloads a motorized vehicle or watercraft. In addition, if an insured entrusts or loans a motorized vehicle or watercraft to a person, there is no coverage. Finally, there is no coverage for the insured’s negligence or nonexistent supervision of a person with respect to a motorized vehicle or watercraft. This exclusion does not apply to bodily injury that may occur to a domestic employee of the insured if the injury occurs in the course of that employee’s duties. This exclusion also does not apply in situations where the policy’s Incidental Liability Coverage provides coverage for Motorized Vehicles or Incidental Liability Coverage for Watercraft.

d. bodily injury or property damage that arises from an aircraft or hovercraft even if the insured is considered vicariously liable because the actions of a child or minor caused or led to the injury or property. This exclusion holds whether or not law imposes the liability.

Example: Nathan owns a small airplane. He sometimes takes his son to the hangar of the private airfield where the plane is kept. While caught up in a conversation with a pilot friend, Nathan hears a commotion nearby. His son had jumped onto Nathan’s plane and, somehow, engaged the engine. The propeller strikes nearby equipment and shatters. Several persons in the hangar were struck and injured by debris. While Nathan is responsible for his son’s actions, his HO policy will not handle the lawsuits filed against him by the injured airfield workers.

e. bodily injury or property damage that arises from a motorized vehicle or watercraft even if the insured is considered vicariously liable because the actions of a child or minor caused or led to the injury or property. This exclusion holds whether or not law imposes the liability. This exclusion also does not apply in situations where the policy’s Incidental Liability Coverage provides coverage for Motorized Vehicles or Incidental Liability Coverage for Watercraft.