Falling Object Damaged by a Vehicle

One of our homeowners clients is insured on AAIS form ML-3. He was transporting his lawn tractor on a trailer being towed behind his auto. The trailer hit a pot hole causing it to sway. The tractor fell off the trailer and onto the road, becoming severely damaged. The insurer denied coverage under the “falling objects” peril, which states “we do not pay for loss to the object which falls.”

We disagree with this interpretation, and think the proximate cause of the loss is the “upset” of the vehicle and therefore covered. What do you think?

New York Subscriber

The AAIS form ML-3 promises to cover direct physical loss to personal property caused by “vehicles.” Losing control of the vehicle and dropping the property onto the road is a sure way of causing direct loss to that property.

 

The adjuster is correct about falling objects, however. The mower became a falling object in its course from the trailer bed to the ground, but it wasn't damaged by being an object in fall. The damage came when it hit, having been tossed from a vehicle. Therefore, the damage is covered.