Topics Covered: 

Outboard Motor and Boat Form PM 00 30

Motorized Vehicles for Handicapped Person PM 00 31

Motorized Ground Maintenance Vehicles Form PM 00 32

Motorized Golf Carts Form PM 00 33

Motorized Snowmobiles Form PM 00 34

Outboard Motor and Boat Form PM 00 30

Like other endorsements we’ve already discussed, the PM 00 30 requires the insured to schedule the watercraft, motor, trailer, and other equipment in question, with the relevant manufacturer, year built, model and serial number for most items. The territory must be specified as well. Coverage either applies to land and inland waters except the Great Lakes, or it applies to land, inland waters including the Great Lakes and coastal waters.

Only certain watercraft are eligible for coverage; they must be owned by an insured and used for pleasure. Boats, including rowboats and canoes, must be no longer than 26 feet overall when measured on the center line, and must be designed exclusively to be propelled by one or more outboard motors. Permanently attached equipment except motors is included.

Also covered are outboard motors including fuel containers and electric starting equipment, or controls supplied by the manufacturer as integral equipment. Trailers designed and used to move the scheduled boat are eligible for coverage. Lastly unscheduled boat and motor equipment such as anchors, boat covers, batteries, battery boxes and chargers, flags, fire extinguishers, flares, horns, life preservers, lines, seat cushions, oars, oar locks, pumps, and similar mobile equipment is covered, with a maximum of $250 for any one item. This property is covered on a blanket basis. The boats, motors, and trailers must all be scheduled separately with a specific amount of coverage. Deductibles are available as follows: $25, $50, $100, $250, $500.

The endorsement provides coverage for the property listed in the schedule if an amount of insurance and a corresponding premium are listed. Parameters for each type of scheduled property apply. Outboard motor boats listed in 1.a. Include permanently attached equipment except for motors. Outboard motors include fuel containers and electric starting equipment or controls if supplied by the manufacturer as integral equipment. Aftermarket parts would not be covered. Boat trailers as listed include boat carriers, and either must be designed and used to carry and move boats as listed under 1.a. of the schedule. Lastly, unscheduled boat and motor equipment includes detached and detachable accessories for the boats and motors listed in the first part of the schedule. Anchors, batteries, battery boxes, chargers, boat covers, fire extinguishers, flags, flagstaffs, flares, fuel containers not covered in b., horns, life preservers, lines, seat cushions, oars, oar locks, pumps and similar mobile equipment.

Newly acquired equipment is covered if it is similar to property already covered by the endorsement, is not more than 10 years old, and is reported to the insurer within 30 days of taking ownership of the property. If the insurer is not notified within 30 days, coverage automatically ceases at the 30 day mark or the end of the policy period, whichever comes first. The most that will be paid is $5,000 for a boat or $1,000 for the motor or trailer.

If the insured disposes of covered property during the policy period and replaces it with similar property, coverage is available up to the amount of the insurance on the disposed property or the invoice cost of the new property, whichever is less. The transaction must be reported to the insurer within 30 days of taking ownership of the property. If the acquisition is not reported in a timely manner, then coverage ends 30 days after the insured takes ownership or at the end of the policy period, whichever occurs first.

Territory is then defined as either on land or inland waters, except the Great Lakes, that are within the Continental United States and Canada, or on land, coastal and inland waters, including the Great Lakes, within the continental United States and Canada. The territory must be selected on the schedule.

Property not covered includes hovercraft, boats equipped with rotors or other apparatus that allows it to become airborne, and contraband or property in the course of illegal trade or transportation.

The endorsement is open perils with a large list of exclusions listed under “We do not insure”. These exclusions are standard and include when the property is rented to others or used to carry people for a charge, racing, business use, wear and tear, vermin and marine life, electrical breakdown, freezing and overheating, extremes of temperature, marring, scratching unless impacted with another object, and similar exclusions that are straightforward.

The form only pays damage that exceeds the deductible, and there are two optional coverages - Towing and Assistance Coverage and Protection and Recovery Costs Coverage. Towing and assistance coverage is an option that provides coverage for emergency repairs if the boat is away from a safe harbor or a trailer is away from the residence. The most paid is $500 for any one event for a maximum of $1,000 during each separate 12 month policy period. Reasonable expenses are limited to towing to the nearest place where repairs can be made; delivery of gas, oil, or parts to the site of disablement; or labor for emergency repairs. The deductible does not apply to this coverage, and the coverage must be indicated on the declarations or elsewhere in the policy.

Protect and Recovery Costs coverage is another optional coverage that must also be indicated on the declarations or elsewhere in the policy. Coverage for reasonable costs that exceed $100 are provided to recover a covered boat, motor, or trailer damaged by a covered peril and to protect the item from further damage, or to have a covered boat hauled out of the water when the weather service issues a hurricane watch or warning where the boat is located and launched in the same general area after the watch or warning has ended. The most paid is $750 for any one event, and a maximum of $1,500 during each separate 12 month period of the policy. The deductible does not apply.

Loss settlement procedures are laid out for total losses, partial losses, and certain specifications for repair practices in accordance with the manufacturer’s accepted practices. For scheduled motors and trailers for either a total or partial loss, no more than the least of the actual cash value, the amount of insurance, or the cost to repair or replace the property is what is paid. For newly acquired boats, motors or trailers, for either total or partial losses, no more than the cost to repair or replace or the limit of insurance is what is paid. Unscheduled equipment is paid proportional to the blanket amount of coverage, with a maximum of $250 for any one item.

The amount of insurance is reduced by the payment of any claim for boats, motors or trailers. That amount will be automatically reinstated, and upon determination of the amount of loss, the insured will pay additional pro rata premium from the date of loss to the expiration of the policy. For unscheduled property, the amount of insurance is not reduced by the payment of any claim.

Payments are settled with the insured unless a claim has been paid by others or another person is listed in the policy or is legally entitled to payment. Losses are payable 60 days after the insurer receives proof of loss and reaches an agreement with the insured or there is an entry of final judgment or there is a filing of an appraisal award with the insurer.

Duties after a loss are standard, as is the loss payee claims. There is a limited amount of property damage liability coverage of up to $1,000 for damage to property of others if the insured is legally liable because of a collision of a covered boat or motor while afloat or a covered trailer while transporting a covered boat. Also, $1,000 is available for costs incurred by an “insured” for any suit the insurer defends. Bankruptcy of the insured doesn’t affect these obligations, coverage does not apply to liability assumed under a contract by the insured, and the policy deductible does not apply. The liability coverage does not apply to property owned by an insured, as that is covered by the other sections of the endorsement. Increased limits are an option of $3,000, $5,000, or $10,000.

Motorized Vehicles for Handicapped Person PM 00 31

The endorsement for Motorized Vehicles for Handicapped Persons is very similar to the Outboard Motor and Boat form PM 00 30. The motorized vehicle, trailer, or scheduled equipment must be listed in the endorsement with manufacturer, year built, model, and serial number. Blanket coverage is available for unscheduled equipment.

Eligible property includes a motorized vehicle, which is defined in the manual as a motorized land conveyance, including permanently installed accessories, equipment, and parts that is designed to assist a handicapped person and used solely by an insured and is owned by an insured or leased to an insured for at least 30 consecutive days. Trailers are defined as a two or four wheeled apparatus designed to be pulled by a motorized land conveyance and used to transport a covered vehicle. Equipment that can be scheduled includes detached and detachable accessories, equipment or parts, with a cost new of more than $250 that are owned or leased to an insured and used for or with a covered vehicle or trailer. This equipment must be scheduled individually. A blanket is available for unscheduled equipment, and that includes similar property for use with motorized vehicles, trailers, and scheduled equipment. The most that will be paid for any one item is $250.

Collision coverage is an option and must be indicated on the schedule. Deductibles of $100, $250, and $500 are available.

The insuring agreement is straightforward, providing coverage for the property listed in the schedule and as described in the form, and limited by the loss settlement provisions. “Motorized vehicle” is then defined as a motorized land conveyance described in the schedule, including permanently installed accessories and parts, that is designed to assist the handicapped, used solely by an “insured”, and owned by an “insured” or leased to an “insured” for at least 30 consecutive days. A trailer is defined as 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. The trailer must also be owned by an “insured” or leased to an “insured” for at least 30 consecutive days and may be required to be registered for use on such roads. Scheduled equipment is described as detached and detachable accessories, equipment, and parts with a cost new value of more than $250 that is used for or with a covered vehicle or trailer and owned by an “insured” or leased to an “insured” for at least 30 consecutive days. Unscheduled equipment is similar, and includes detached and detachable equipment, accessories, and parts owned by an “insured” used for or with scheduled motorized vehicles, trailers, or scheduled equipment.

Newly acquired property is covered if it is similar to already scheduled property and is acceptable to the insurer. Limits are $3,500 for the vehicle, $1,000 for a trailer, and $500 per item for equipment. If a scheduled vehicle or trailer is disposed of during the policy period and replaced with a similar vehicle or trailer, then coverage is the lesser of the amount of insurance on the disposed property or the invoice cost of the replacement property. The replacement must be reported within 30 days of acquisition; if it is not reported within that time frame, coverage automatically ceases 30 days after the insured took ownership or the end of the policy period, whichever occurs first.

There is also coverage for borrowed or rented vehicles, if they are borrowed and operated with the permission of the owner or rented for less than 30 consecutive days if it is similar to a covered vehicle. The most that will be paid is the lowest amount of insurance shown for vehicles in the schedule.

Not covered are amphibious vehicles, hovercraft or other ground effect vehicles, and contraband or property in the course of illegal transportation or trade. If indicated on the schedule, collision is covered, and collision means the physical contact of a covered vehicle or trailer with another object, or the upset of such a vehicle or trailer without contact with another object.

Similar to the Outboard Motor and Boat form this is an open perils policy with a large list of excluded property and perils listed under “We do not insure:”. As in the Outboard Motor and Boat endorsement these excluded items include property rented to others, carrying people/property for a fee, used in any race, and the standard wear and tear, deterioration, marring, scratching, animals, birds, vermin, and other excluded perils.

Only the part of the loss that exceeds the deductible is paid. There is an optional coverage for Emergency Repairs if the option is shown in the schedule or elsewhere in the policy. Reasonable costs for emergency repairs in excess of $50 are provided for a covered vehicle or trailer that is away from the “insured” residence shown in the declarations. The most paid is $250 for any one event and $500 during each separate 12 month policy period. Reasonable expenses are limited to transportation to the nearest place where the repairs can be made; delivery of repair parts to the site of disablement, but excluding the cost of the items; charging batteries, or labor for emergency repairs at the site of disablement. The deductible does not apply to this coverage.

Loss settlement provisions are again very similar to those in the Outboard Motor and Boat form, with parameters for settlement of a total loss to scheduled or replacement motorized vehicles, trailers or equipment; newly acquired motorized vehicles, trailers or equipment; specifications or repair practices; unscheduled blanket equipment; reinstatement of insurance after loss; loss payment; duties after a loss; and loss payable clause.

A section on Other conditions address other insurance and service agreements, plans or warranties, and specifies that this policy is excess over other insurance; or amounts payable under mechanical breakdown insurance or warranty, manufacturer’s or extended warranty, service plan, property restoration plan, or any other similar service agreement, plan or warranty.

A small amount of liability coverage is also provided 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. The most that is paid is $1,000, and another $1,000 is available for costs incurred by an “insured” in any suit the company defends. Bankruptcy of the insured does not affect the insurer’s obligations. This coverage does not apply to any liability assumed under contract by an “insured”. The deductible does not apply.

The liability section does not apply to property owned by an “insured”, and the limit of liability may be increased to $3,000, $5,000, or $10,000.

Motorized Ground Maintenance Vehicles Form PM 00 32

The endorsement for Motorized Ground Maintenance Vehicles follows the format of the Outboard Motor and Boat form PM 00 30 and the Motorized Vehicles for Handicapped Person PM 00 31 with a few differences specific to the type of equipment insured. The motorized vehicle, trailer, or scheduled equipment must be listed in the endorsement with the manufacturer, year built, model and serial number. Blanket coverage is available for unscheduled equipment.

Eligible equipment is a motorized vehicle which is defined as a motorized land conveyance, including permanently installed accessories, equipment, or parts that is designed for ground maintenance tasks such as mowing grass, raking lawns, plowing snow or working the soil; is not built or modified to exceed 25 miles per hour on level ground; owned by an insured or leased for at least 30 consecutive days and is used primarily at an insured’s residence. Trailers are two or four wheeled apparatus designed to be pulled by a motorized land conveyance and used to transport a covered vehicle. Scheduled property includes detached and detachable accessories, equipment or parts, each with a cost new value of more than $250 that are owned or leased by the insured and used for or with a covered vehicle or trailer, and individually scheduled. Unscheduled equipment is also eligible and includes detached and detachable accessories, equipment and parts owned by an insured that are used with scheduled motorized vehicles, trailers, or scheduled equipment; the most that will be paid is $250 per item.

Collision coverage is an option and must be indicated on the schedule. Deductibles of $100, $250, and $500 are available.

The form then describes the covered property as described in the eligibility requirements, and includes parameters for newly acquired, replacement property, reporting requirements, and borrowed or rented vehicles.

Property not covered is contraband or property in the course of illegal transportation or trade. The form is open perils like the previously discussed forms, with optional collision coverage. The perils listed as not insured are similar to those listed in the previous forms and include when the vehicle is rented to others or used to carry people or property for a fee; racing; any business activity; wear and tear, marring, vandalism if the property has been kept on an unoccupied premises; animals, birds, vermin, and others.

A deductible applies and there is an option for Limited Business use Coverage if the covered property is used to mow grass, rake lawns, plow snow or perform other residential ground maintenance tasks for money or other compensation. The option must be shown in the declarations or elsewhere in the policy.

Loss conditions are then provided and again, these are similar to the provisions in the already discussed forms and cover settlement for scheduled or replacement motorized vehicle, trailers and equipment; newly acquired motorized vehicles, trailers and equipment; specifications or repair practices; unscheduled equipment blanket coverage; reinstatement of amount of insurance after loss; loss payment; duties after loss; and loss payable clause. Other conditions include other insurance, warranty and service agreement conditions.

As with the other endorsements, a limited amount of liability coverage up to $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 is provided. Another $1,000 is available for costs incurred by an “insured” in any suit defended by the insurer. The limits may be increased to $3,000, $5,000, or $10,000.

Excluded is property owned by an “insured” or property of others if at the time of a collision the “motorized vehicle” or trailer is rented to others; being operated or in preparation for any race or competition; being used to carry persons or property for a fee; or being used in any activity engaged in for money or compensation. However, if the Limited Business Use Coverage option has been selected, this exclusion does not apply.

Motorized Golf Carts Form PM 00 33

The Motorized Golf Carts form PM 00 33 is very similar to the previously discussed forms. Coverage is available for the scheduled golf cart, trailer, scheduled equipment, and unscheduled equipment as listed in the schedule. The schedule requires the manufacturer, year built, model and serial number.

Golf carts are defined as a motorized land conveyance including permanently installed accessories or parts, that are designed to carry up to four people on a golf course for the purpose of playing golf; are used for other personal pleasure activity; are owned by an insured or leased to an insured for at least 30 consecutive days; and are not built or modified to exceed speeds of 25 miles per hour on level ground. Trailers are two to four wheeled apparatus designed to be pulled by a motorized land conveyance and used to transport a covered golf cart. Scheduled equipment is detached and detachable accessories, equipment or parts with a cost new of more than $250 that are owned or leased by an insured and used for or with the covered golf cart or trailer. The equipment must be individually scheduled. Unscheduled equipment can be covered on a blanket basis and includes detached or detachable accessories, equipment or parts owned by or an insured that are used for or with the scheduled golf cart, trailer, or scheduled equipment. The most paid for any one item is $250.

Collision coverage is an option and must be indicated on the schedule. Deductibles of $500 and $1000 are available.

The form then describes the covered property as described in the eligibility requirements, and includes parameters for newly acquired, replacement property, reporting requirements, and borrowed or rented vehicles.

Property not covered is contraband or property in the course of illegal transportation or trade. The form is open perils like the previously discussed forms, with optional collision coverage. The perils listed as not insured are similar to those listed in the previous forms and include when the vehicle is rented to others or used to carry people or property for a fee; racing; any business activity; wear and tear, marring, vandalism if the property has been kept on an unoccupied premises; animals, birds, vermin, and others. A deductible applies.

Loss conditions are then provided and again, these are similar to the provisions in the already discussed forms and cover settlement for scheduled or replacement golf carts, trailers and equipment; newly acquired golf carts, trailers and equipment; specifications or repair practices; unscheduled equipment blanket coverage; reinstatement of amount of insurance after loss; loss payment; duties after loss; and loss payable clause. Other conditions include other insurance, warranty and service agreement conditions.

As with the other endorsements, a limited amount of liability coverage up to $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 is provided. Another $1,000 is available for costs incurred by an “insured” in any suit defended by the insurer. The limits may be increased to $3,000, $5,000, or $10,000.

Excluded is property owned by an “insured” or property of others if at the time of a collision the “golf cart” or trailer is rented to others; being operated or in preparation for any race or competition; being used to carry persons or property for a fee; or being used in any activity engaged in for money or compensation. However, the exclusion does not apply to business conducted by an “insured” from a covered “golf cart” while on a golfing facility.

Motorized Snowmobiles Form PM 00 34

The Motorized Snowmobiles Form PM 00 34 is very similar to the previously discussed forms. Coverage is available for the scheduled snowmobile, trailer, scheduled equipment, and unscheduled equipment as listed in the schedule. The schedule requires the manufacturer, year built, model and serial number.

Snowmobiles are defined as a motorized land conveyance including permanently installed accessories or parts, that is designed to carry one or two people on snow-covered ground; not built or modified after manufacture to exceed a speed of 50 miles per hour on level ground; is owned by an insured or leased to an insured for at least 30 consecutive days; and is only for personal pleasure. Trailers are two to four wheeled apparatus designed to be pulled by a motorized land conveyance and used to transport a covered snowmobile. Scheduled equipment is detached and detachable accessories, equipment or parts with a cost new of more than $250 that are owned or leased by an insured and used for or with the covered snowmobile or trailer. The equipment must be individually scheduled. Unscheduled equipment can be covered on a blanket basis and includes detached or detachable accessories, equipment or parts owned or leased by or an insured that are used for or with the scheduled snowmobile, trailer, or scheduled equipment. The most paid for any one item is $250.

Collision coverage is an option and must be indicated on the schedule. Deductibles of $500 and $1000 are available.

The form then describes the covered property as described in the eligibility requirements, and includes parameters for newly acquired property, replacement property, reporting requirements, and borrowed or rented snowmobiles.

Property not covered is contraband or property in the course of illegal transportation or trade. The form is open perils like the previously discussed forms, with optional collision coverage. The perils listed as not insured are similar to those listed in the previous forms and include when the vehicle is rented to others or used to carry people or property for a fee; racing; any business activity; wear and tear, marring, vandalism if the property has been kept on an unoccupied premises; animals, birds, vermin, and others. A deductible applies.

Loss conditions are then provided and again, these are similar to the provisions in the already discussed forms and cover settlement for scheduled or replacement snowmobiles, trailers and equipment; newly acquired snowmobiles, trailers and equipment; specifications or repair practices; unscheduled equipment blanket coverage; reinstatement of amount of insurance after loss; loss payment; duties after loss; and loss payable clause. Other conditions include other insurance, warranty and service agreement conditions.

As with the other endorsements, a limited amount of liability coverage up to $1,000 for damage to property of others caused by the collision of a covered "snowmobile" or trailer while being used by an “insured” and for which an “insured” is legally liable is provided. Another $1,000 is available for costs incurred by an “insured” in any suit defended by the insurer. The limits may be increased to $3,000, $5,000, or $10,000.

Excluded is property owned by an “insured” or property of others if at the time of a collision the “snowmobile” or trailer is rented to others; being operated or in preparation for any race or competition; being used to carry persons or property for a fee; or being used in any activity engaged in for money or compensation.

Summary

The inland marine endorsements provide coverage not found in the home or auto policies for certain types of equipment. The type of equipment an insured has and exactly what type of coverage is desired will determine which policy is best suited to provide the desired coverage. For example, there are snowmobile endorsements available on the home, auto, and inland marine policy; which coverage best suits an insured's needs will dictate which policy best fits.

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