An insured's boat sank and the personal property on the boat was lost. The insured's boat policy only had $500 coverage for personal property, and the insured collected that amount from the boat insurer. However, there was more than $500 worth of personal property on the boat. The insured put a claim in for the rest under his homeowners policy and this claim was denied by the carrier.
The insurer contends that it insures for accidental direct physical loss to personal property caused by the named perils in the policy. Direct physical damage caused by vehicles is a covered peril. The insurer agrees that a boat can be considered a vehicle, but in the subject claim the personal property was not damaged by a vehicle, rather the boat sunk which allowed water to damage the personal property. The insurer claims that there is no other peril named that would apply to this type of direct physical damage.
This premium content is locked for FC&S Coverage Interpretation Subscribers
Enjoy unlimited access to the trusted solution for successful interpretation and analyses of complex insurance policies.
- Quality content from industry experts with over 60 years insurance experience, combined
- Customizable alerts of changes in relevant policies and trends
- Search and navigate Q&As to find answers to your specific questions
- Filter by article, discussion, analysis and more to find the exact information you’re looking for
- Continually updated to bring you the latest reports, trending topics, and coverage analysis
Already have an account? Sign In Now
For enterprise-wide or corporate access, please contact our Sales Department at 1-800-543-0874 or email [email protected]