Includes copyrighted material of Insurance Services Office, Inc., with its permission.
Reviewed June 7, 2019
Golfer's equipment can range from relatively reasonably priced clubs sets starting at $300 to individual luxury clubs starting at $5,400. Like other specialty items, golf clubs are better insured on an inland marine form—it addresses the unique factors specific to golf clubs. The ISO form PM 00 16 is specifically developed to provide coverage for golf clubs and other equipment.
Topics covered:
Like other inland marine forms, the form allows the insured to schedule described golf equipment for specified amounts. As always, an accurate description of the items and an accurate value are important. Wear makes a difference; mint quality equipment is much more valuable than that worn by use or age. As will be seen not just clubs are covered by the form; other items from clothing to other accessories are covered as well.
A. Property Covered
1.We cover scheduled and unscheduled golfer's equipment owned by an “insured” while anywhere in the world only if an amount of insurance and premium is shown for that property in the Schedule above.
The amount of insurance shown for such property is limited by Paragraph D.1. Loss Settlement in Common Policy Provisions Form PM 00 01.
2.Golfer's equipment includes:
a.Golf clubs and golf clothing;
b.Other clothing contained in a locker while an “insured” is playing golf;
c.Golf balls but only for direct physical loss by the perils of:
(1) Fire; or
(2) Burglary but only if there are visible marks of forcible entry into the building,
room or locker; and
d.Other golf accessories and equipment.
Analysis
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 insured can travel with his equipment and the coverage follows. This is important as many avid golfers like to play various well-known courses around the world.
The loss settlement conditions that apply appear in the Common Policy Provisions form, PM 00 01, section D.1. The scheduled form has no settlement provisions; it is designed to identify specific property and what the agreed amounts are and to be paired with the common provisions form.
Section D.1 of the Common Policy Provisions form states that the value scheduled is not an agreed upon amount but that the value will be determined at the time of loss. In event of a loss, no more than the lesser of four amounts will be paid: the actual cash value of the article at the time of loss, the amount for which the article could be reasonably repaired to its condition immediately before the loss, the lesser of the amount for which the article could be reasonably replaced with one substantially similar to it, or the agreed value of the item. This allows the carrier to return the insured to his pre-loss condition at the lowest cost to the carrier while still providing proper indemnity. It is important to make this clear to the insured; just because equipment is scheduled with an assigned dollar value does not mean that is what the insured will get in the event the equipment or part of the equipment is damaged or lost. Carriers may be able to replace equipment at less than retail cost, and if an exact duplicate or substantially identical article can be gotten at such a price, the carrier will do so.
The policy specifies what is included as golfer's equipment: golf clubs and clothing, other clothing left in a locker while the insured is playing golf, and golf balls, but only if the balls are damaged by fire or burglary, as long as signs of forced entry are present. As many golf balls can be lost during a game, only burned or stolen golf balls are covered. This may seem trivial, but since golf balls can go for $47.99 per dozen, and superior balls for $74.95, the cost could add up. Golf clubs generally have dress requirements, so golfers leave their street clothes in lockers while they play. Also included is other accessories and equipment, without any specification as to what those accessories or equipment might be. Accessories can be ball retrievers, towels, pull carts, umbrellas, coolers, tees, headcovers, sunglasses, shoes, shoe bags, and a myriad of other items.
B. Property Not Covered
We do not cover contraband or property in the course of illegal transportation or trade.
Analysis
Property not covered is short and sweet and limited to contraband or property in the course of illegal transportation or trade. While it seems odd that drug deals or selling of contraband would happen on the golf course, it is possible and such property is excluded.
C. Perils Insured Against
We insure against risk of direct physical loss to covered property.
We do not insure loss caused by:
1. Wear and tear, deterioration, inherent vice or any quality in property that causes it to damage or destroy itself; or
2. Insects or vermin.
Analysis
This is an open perils form, so only what is specifically excluded is not covered. Broad coverage is provided—wear and tear, deterioration, or inherent vice is excluded, as is damage by insects or vermin. So if the insured is frustrated with his performance and one day runs over his club with the golf cart or wraps his club around a tree and damaging the club, that damage is covered.
D. Deductible
We will pay only that part of the total of all loss payable under this policy that exceeds the deductible amount shown in the Declarations.
Analysis
The form has a standard deductible clause. A loss is not paid until it is over the amount of the deductible listed on the policy.