I regularly see posted on this board threads which contain questions about insurance. Invariably someone always posts that their tractor is covered by their homeowners policy only while it is located on their property, not off the premises. Generally speaking this is not true. Assuming you have a standard homeowners policy (Form 3 - this is the standard) purchased from an idependent agency (not State Farm, Allstate, etc.), you can almost be certain it is an HO-3. This policy is written by an organization known as ISO and is industry standard across the vast majority of property companies. The correct interpretation of the 1991 edition of the policy, which again is the vast majority (as opposed to the 2000 edition policy) is as follows:
Section I - Property section of the policy
Section II - Liability section of the policy
"The 1991 homeowners policy states there is both property coverage and liability coverage for:
“vehicles or conveyances not subject to motor vehicle registration which are used to service an “insured’s” residence;”
Clearly a riding mower is used to service the residence, so under the 1991 policy if the mower is stolen there is coverage under Section I of the homeowners policy, subject to the deductible. Likewise, if the insured (or his resident son, daughter, or wife or a residence employee ) were using the mower to cut their yard and negligently ran someone over, there would be protection under Section II of the policy.
It’s important to note that the policy wording simply requires that the mower be “used to service the residence” for coverage to apply. The form does not state that coverage applies only “while being used to service an insured’s residence.” Consider the insured who uses his riding mower (or 4-wheeler or golf cart) to service the premises as well as to go down the street to visit a neighbor every now and then. Regardless of where the claims takes place (even off premises on a public road) or how the mower was being used at the time of the occurrence, there would be coverage under the policy, again both property and liability. As a further example, if the insured owned a 4-wheeler and used it to both service the premises and also for hunting at a hunt camp three counties away there is a good argument for coverage even while the owned 4-wheeler is off premises. The insured could simply argue that the 4-wheeler was used at some time to service the residence and the policy does not require that it be used only to service the residence. While this whole concept may seem to be “splitting hairs” it’s the exact type of analysis that goes on in courts, often resulting in coverage being provided where perhaps none was intended. "
This info is taken directly from the following website, because they are such an excellent resource for many coverage opinions:
http://www.faia.com/education/edlibrary/mowers.cfm
The 2000 edition of the policy does alter the language somewhat and creates coverage issues in this scenario. Click on the link above to get the whole story on the change and how it affects the 2000 policy. At this point, very few carriers have adopted the 2000 form, but they are out there. If there wasn't coverage on the 1991 form, why do you suppose it was changed for the 2000 form?
In my opinion, most of you are receiving incorrect guidance from your agents. I hold property/casualty adjusting licenses in several states.
