Vehicle Titles as Personal Records

May 5, 2010

I have a question regarding coverage under a HO3. The insured has 24 titled vehicles for road use. A fire destroyed the State of Illinois title and registration proof of ownership. A claim is being submitted for the cost to replace these titles. The cost to replace a title in Illinois is $95.00. The total claim submitted by the insured is $2,280.00. The insured is not a dealer or in business of buying and selling vehicles.

I believe this is not covered under a HO3. Vehicles are not covered. This item (title) is no different than a tail light, just a “part” of the overall vehicle.

Illinois Subscriber

The homeowners policy defines motor vehicle as a self-propelled land or amphibious vehicle. We disagree that the title is part of the overall vehicle; it has nothing to do with the operation of the vehicle and is not attached to the vehicle. The title shows ownership, but it is not part of the vehicle. Therefore, it would be covered under the special limit of $1,500 on securities, accounts, deeds, or personal records. The limit includes the cost to replace the information, so replacement titles should be covered.