Motorized Ground Maintenance Vehicles Form
June 29, 2015
Like golf carts and snowmobiles, motorized ground maintenance vehicles are their own special type of property. Not really an automobile, but not normal personal property or yard equipment, they are in a class of their own. As with the other two types of equipment, an inland marine form is the best way to provide coverage. ISO form PM 00 32 is designed to provide coverage for motorized ground maintenance vehicles, their trailers and equipment. The form is virtually identical to the forms for golf carts and snowmobiles See Motorized Golf Carts Form and Motorized Snowmobiles Form. Because of this similarity, only the differences will be discussed here.
Topics Covered:
Newly acquired or replacement property
a. “Motorized Vehicle” Defined
The following definition is added specifically to this form and does not alter the definitions in Common Policy Provisions Form PM 00 01:
“Motorized vehicle” means a land motorized conveyance, described in the Schedule
above, including permanently installed accessories, equipment or parts, that is:
(1) Designed for ground maintenance tasks such as mowing grass, raking a lawn,
plowing snow, or tilling or grading soil;
(2) Not built or modified after manufacture to exceed a speed of 25 miles per hour on level ground;
(3) Owned by an “insured” or leased to an “insured” for at least 30 consecutive
days; and
(4) Used primarily at an “insured's” residence unless the Limited Business Use
Coverage option applies, and then only to the extent of the permitted business
use.
Analysis
Like the golf cart and snowmobile forms, property on this form must be scheduled, and give the manufacturer, year build, model and serial or motor number. Scheduled property includes the ground maintenance vehicle itself, trailers for the ground maintenance vehicle, scheduled and unscheduled equipment. Like most personal property coverages, this form covers scheduled property while it is anywhere in the world as long as it is shown on the schedule. The loss settlement provisions are described later in the form; this form does not use the provisions in the common provisions form.
The motorized vehicles are then defined as a motorized land conveyance including any permanently installed equipment; this is the same as the other forms. The definition differs in that the vehicle is designed not for carrying passengers but for ground maintenance tasks such as mowing grass, raking a lawn, plowing snow or tilling or grading soil. Like the other equipment is must not be built or modified to exceed twenty-five miles per hour on level ground, and it must be owned or leased to an insured for at least thirty consecutive days. Note that equipment permanently installed is considered part of the vehicle itself; equipment that is detachable or that is not permanently installed would be covered separately under scheduled equipment or the blanket coverage. This form states that the equipment must be used primarily at an insureds residence unless the Limited Business Use Coverage option applies; if that coverage has been selected, then the property is covered but only for that selected business use. That optional coverage is part of this policy and will be discussed later. Note that the property must be used primarily for use at the insured's residence, and not solely. This means that the insured can take his mower over to his grandparents or friend's house to help with yard maintenance as long as he mostly uses the equipment in his own yard.
b. Trailer
A trailer is a two or four wheeled apparatus designed to be pulled by a motorized land conveyance and used to transport a ” motorized vehicle ” over public or private roads. Such apparatus:
(1) Shall be owned by an “insured” or leased to an “insured” for at least 30
consecutive days; and
(2) May be required to be registered for use on such roads.
c. Scheduled Equipment
Scheduled equipment includes detached and detachable accessories, equipment or
parts, each with a cost new value of more than $250 that are:
(1) Used for or with a covered vehicle or trailer; and
(2) Owned by an “insured”; or leased to an “insured” for at least 30 consecutive
days.
(3) Used primarily at the “insured's” residence shown in the Declarations unless
the Limited Business Use Coverage option applies, and then only to the extent
of the permitted business use.
d. Unscheduled Equipment – Blanket Insurance
Unscheduled equipment includes detached or detachable accessories, equipment or
parts owned by an “insured” that are used for or with property scheduled under Item
1.a., b. or c.
Analysis
The form then goes on to define trailers, scheduled and unscheduled equipment. The definition is the same as in the other forms, and is briefly described here. The difference is that once again the equipment must be used primarily at the insured's residence unless the limited business use coverage applies, and then only for the limited business use.
Trailers are those designed to transport any type of equipment, but are used by the insured to transport the ground maintenance vehicle over public or private roads. The trailer must be owned or leased to the insured for at least thirty consecutive days, and the trailer may be required to be registered on public roads. This allows the insured to use one trailer for multiple vehicles such as maintenance vehicles, snowmobiles and atvs, but schedule it under this policy so it is covered.
Scheduled equipment is defined as equipment that is or can be detached from the vehicle and has a value of more than $250; smaller equipment does not need to be scheduled, and the carrier does not want an extensive schedule of small dollar items. Again, the equipment must be used with either the maintenance vehicle or the trailer, and must be owned or leased to the insured for thirty consecutive days. The carrier does not want to be involved with the insured leasing items for a short period of time, then trading them in for another type of item for another short period, and so forth. In order for there to be coverage, the insured must commit to the type of equipment he wants to cover.
Unscheduled property may be covered on a blanket basis, and there is no need for an elaborate definition. Unscheduled equipment is the same as scheduled equipment; detachable accessories with no minimum dollar amount, that are used with either the maintenance vehicle, trailer, or scheduled property.
Newly Acquired or Replacement Property
2. Newly Acquired Or Replacement Property
a. Newly Acquired Property
(1) We will cover a vehicle, trailer or equipment that you acquire, by
ownership, during the policy period if it is:
(a) Similar to a “motorized vehicle” or scheduled trailer or equipment; and
(b) An acceptable risk to us.
(2) The limit for this coverage is the cost of the item to you up to:
(a) $3,500 for the vehicle;
(b) $1,000 for the trailer; and
(c) $500 per item for the equipment.
b. Replacement Property
If, during the policy period, you dispose of a “motorized vehicle” or scheduled trailer or equipment, we will cover similar replacement property that you acquire by ownership up to:
(1) The amount of insurance of the disposed property; or
(2) The invoice cost of the replacement property;
whichever is less.
c. Reporting Requirement
You must report the transaction to us within 30 days of taking ownership and pay any additional premium from that date.
If you fail to do so, coverage will cease automatically 30 days after you take ownership or at the end of the policy period, whichever occurs first.
Analysis
There are special conditions for when an insured acquires a new vehicle, trailer or equipment. Not only are there limits as to the value of new equipment that will be covered, but the form states that that property must be an acceptable risk to the carrier. Unfortunately, the form does not explain what an acceptable risk is, so the producer and insured are left to their own devices to determine just what is acceptable. This is identical to the other forms. the only difference is that the limit of coverage for a new vehicle is $3,500 instead of $5,000; the other limits of $1,000 for a new trailer, and $500 per item for equipment are the same. An insured should notify the carrier immediately when purchasing a new vehicle so it can be scheduled and properly covered. If the old vehicle is traded in for a new vehicle, then the lesser of the amount of coverage on the old vehicle or the cost of the new vehicle is what will be paid in event of a loss. Again, in order for a spiffy new vehicle to be properly covered, the insured needs to notify the carrier right away. If the insured trades in an older vehicle for a new vehicle and does not notify the carrier within thirty days, there is no coverage on the vehicle. If the policy period ends before that thirty days is up, then coverage ends then.
E. Option
The following option applies to this policy only if the box for that option is checked in the policy Declarations, or is otherwise indicated elsewhere in this policy.
Limited Business Use Coverage The preclusion of coverage in Paragraph C.3.b. does not apply to loss to covered property used by an “insured” to mow grass, rake lawns, plow snow or perform other residential ground maintenance tasks for money or other compensation.
Analysis
If limited business use coverage is desired, it must be listed in the dec or elsewhere in the policy. This coverage is designed to allow the insured to do some side jobs with his equipment, such as removing snow or mowing the lawn for a few neighbors or friends; it is not designed to provide coverage for the insured's full time landscaping business. The remaining property coverages, loss conditions, reinstatement of insurance after a loss, loss payment, duties after a loss, loss payable clause and other conditions are the same as those in the golf cart and snowmobile forms.
PART II . PROPERTY DAMAGE LIABILITY
COVERAGE
A. Limited Coverage
1. We will pay up to:
a. $1,000 for damage to property of others caused by the collision of a covered “motorized vehicle” or trailer while being used by an “insured” and for which an “insured” is legally liable to pay; and
b. $1,000 for costs incurred by an “insured” in any suit we defend.
Bankruptcy or insolvency of an “insured” or an “insured's” estate shall not relieve us of our obligations under this coverage.
2. This coverage does not apply to liability assumed by an “insured” under any contract or agreement.
3. The policy deductible does not apply to loss under this coverage.
B. Exclusion
We will not pay for damage to:
1. Property owned by an “insured”; or
2. Property of others if, at the time of a collision, the “motorized vehicle” or trailer is:
a. Rented to others;
b. Being operated in or practicing for any prearranged or organized race, speed contest or other competition;
c. Being used to carry persons or cargo for a charge; or
d. Being used in any activity engaged in for money or other compensation. However, if the Limited Business Use Coverage option applies, this Exclusion b.(4) does not apply to damage caused by collision while the vehicle is being used by an “insured” to mow grass, rake lawns, till or grade soil, plow snow or perform other residential ground maintenance tasks for money or other compensation.
C. Optional Increased Limits
If this option applies, the limits of liability noted in A.1. above are each increased to the limit selected in the policy Declarations or shown elsewhere in this policy for this option.
Analysis
The only difference in the liability coverage is again that for limited business use coverage; if that option is selected, the insured has limited liability for collision events while working for a fee.