Handling Motorized Property

Insurance policies are dedicated role players. They are designed to fulfill a specific job. A homeowners policy wants to handle losses associated with home ownership. Auto policies want to restrict their job to responding to auto losses. Boat policies are meant to……okay, you probably understand!

In order for a home, auto, or any form of policy to perform properly; it has to make clear what types of losses it will protect against and it must be priced so that it can efficiently handle an insurance company's objectives. Therefore, policies have to have clearly defined coverage roles. However, our lives and our activities; the things we own and the losses that occur do not always fall into clear categories. Motorized property is an issue that challenges the roles of both home and auto policies.

In this country, many millions of homes sit on property that includes land. That land often is divided into areas for driveways, front and back yards and walkways or paths. Autos, pickup, hybrids, SUVs and other vehicles are designed to transport people and property (cargo). These items are clearly covered by auto policies. Homes, garages, play sets, pools and structures are clearly covered by home policies. But what about other forms of property that includes motors; particularly items that have the capability of self-propulsion?

Different types of motorized property have their own designs and intended purposes. Motorized items that are meant to be used for travel and recreation, such as snowmobiles, mopeds, motorcycles, All Terrain Vehicles (ATVS) are still vehicles with the chief purpose of transporting persons and, sometimes, property. However, since they are significantly different than cars or trucks (they often have less than four wheels) or are operated differently (off-road use), they are covered differently. Owners of such property usually have to buy other forms of coverage, such as motor cycle or recreational vehicle policies.

Other forms of motorized property have other purposes, some that are directly related to owning a home. Items such as riding lawn mowers, snow blowers, motorized carts, garden tractors and similar equipment are designed to take care of a residence by cutting lawns, clearing driveways and walks, and maintaining gardens and landscaping. Such property is usually handled by a home policy; but there is an important exception. Coverage is usually granted only when such property is used on the residential grounds. When they are used on the roads or on property that belong to other persons; coverage stops.

Sometimes either a home or an auto policy can be modified by attaching (and paying for) additional coverage that takes care of such instances. However, when such changes aren't made or if the right coverage is not in force, coverage gaps still exist.

If you own motorized property, be sure you use it the way it is designed and the way it is intended. Also, be sure to find out and purchase the coverage you need.

COPYRIGHT: Insurance Publishing Plus, Inc. 2011

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