Winterizing Your Insurance

The ISO 2000 form is similar except that the first section II exclusion eliminates coverage for any "motor vehicle" (defined as a "self-propelled land or amphibious vehicle") if at the time of the occurrence (defined as an accident resulting in bodily injury or property damage) the vehicle is "registered for use on public roads or property," or is not registered, but such registration is required for the vehicle to be used at the place of the occurrence by a governmental law or regulation.

And herein lies the dilemma. What do the state regulations say about registering snowmobiles?

Ohio, for one, says "no registration is required for a snowmobile [defined as a "self-propelled vehicle designed primarily for use on snow or ice, and steered by skis, runners or caterpillar treads], off-highway motorcycle or all purpose vehicle that is operated exclusively (italics added) upon lands owned by the owner of the snowmobile, off-highway motorcycle or all-purpose vehicle, or on lands to which the owner has a contractual right (OH. Rev. Code Ann. Title XLV. 4519.02).

In other words, if the snowmobile sets a runner off permissible property and becomes subject to motor vehicle registration, it appears there is no coverage for bodily injury or property damage under the 1991 edition. This is so even if, at the time of the accident, the snowmobile was on the insureds premises.

By limiting the exclusion for registration to use on "public roads or property," the 2000 edition might be interpreted as giving broader coverage. This is because Ohios statute does not specify registration is required for use on public propertyit states that registration is required, period. And, a different reading of the exclusion suggests that if, at the time of an occurrence, the snowmobile is registered, then not only does that exclusion apply, but the exception for coverage if the occurrence is on the homeowners own premises will be voided.

Although coverage for an "owned snowmobile" can be endorsed onto the 2000 homeowners form, it does not remove the registration requirement exclusion, nor is there any coverage for a newly acquired snowmobile. Look to the auto policy, therefore, to "winterize" this exposure. Attach endorsement PP 03 20 (snowmobile endorsement) to the personal auto policy. Whether or not the snowmobile is registered and where it is used will not affect coverage. (Of course, certain exclusions, such as when used in a race, apply.)

The endorsement provides medical payments coverage, coverage for a newly acquired or temporary substitute snowmobile, physical damage coverage, and uninsured motorists coverage, none of which are permitted on the homeowners endorsement.

Should premises liability be winterized? Is there a liability exposure if a snowmobiler comes onto ones property?

Here, state statutes may vary, but generally the property owner has no duty to provide safe premises for recreational use unless, as Ohios code puts it, "valuable consideration" exchanges hands. The property owner may even post signs stating that snowmobiling is permitted; by doing so the property owner is not held to be giving any assurance the premises are safe for use.

So, why not just forget about the snowy North and escape to the South?

If the South means Florida, then definitely winterize!

Many Northerners migrate South for a period of at least three months. Florida is a no-fault state, and Florida statutes require that motor vehicles that have been physically present within the state for more than 90 dayscumulative, not consecutiveduring the preceding 365 days must obtain insurance in the state of Florida. This law applies whether or not the vehicles have been operated during the 90-day period. Therefore, the snowbird should obtain a Florida non-resident drivers license and coverage from a Florida agent.

The other option is to go to Arizonaas of this writing their requirements were much less stringent.

Now on to the golf course.

Liability arising from use of a motorized golf cart when used to play golf on a golf course is covered by the ISO 1991 homeowners policy. The ISO 2000 forms have expanded this coverage. Liability for a golf cart used to play golf "or for other recreational or leisure activity allowed by the facility," travel to or from the parking lot, or crossing public streets at designated spots to access other parts of the golf facility is specifically covered.

Covered as well is liability for using a golf cart within the bounds of a private residential community, including upon its public roads, where such usage is permitted.

A winterization of golf cart coverage is not complete without attention to physical damage coverage. This may be added by endorsement to the 2000 forms.

Possibly a better solution, though, is to add coverage by attaching the miscellaneous type vehicle endorsement to the personal auto policy. This gives coverage for physical damage to the golf cart as well as liability, medical payments and uninsured motorists coverage without the worry as to whether the golf carts use falls within the exceptions to the liability exclusions.

So dont just watch those chestnuts roasting on an open fire, winterize!

Diane Richardson, CPCU, is associate editor of the FC&S Bulletins, published by the National Underwriter Company in Erlanger, Ky. The FC&S editors welcome comment and questions and may be reached by fax at 859-692-2293 or via e-mail at FCS@NUCO.COM.

Reproduced from National Underwriter Property & Casualty/Risk & Benefits Management Edition, December 12, 2003. Copyright 2003 by The National Underwriter Company in the serial publication. All rights reserved.Copyright in this article as an independent work may be held by the author.