Coverage on a Golf Cart When It's Not Used for Golfing

Question from an IIABNY member: I would like some information on golf carts and what & when  insurance applies.  We have a customer who belongs to a  Yatch Club and drives the golf cart around on the camp site  and stores it there for the summer.  He is not using it for golfing. Is there coverage?

Answer: With regard to liability coverage, Exclusion A.2. of the ISO Homeowners 3 policy states:

If exclusion A.1. does not apply, there is still no coverage for "motor vehicle liability" unless the "motor vehicle" is:…

e. A motorized golf cart that is owned by an "insured", designed to carry up to 4 persons, not built or modified after manufacture to exceed a speed of 25 miles per hour on level ground and, at the time of an "occurrence", is within the legal boundaries of:

(1) A golfing facility and is parked or stored there, or being used by an "insured" to:

(a) Play the game of golf or for other recreational or leisure activity allowed by the facility;

(b) Travel to or from an area where "motor vehicles" or golf carts are parked or stored; or

(c) Cross public roads at designated points to access other parts of the golfing facility; or

(2) A private residential community, including its public roads upon which a motorized golf cart can legally travel, which is subject to the authority of a property owners association and contains an "insured's" residence.

I don’t think an insurer would consider a yacht club or a camp site to be a private residential community, since it is not under the authority of a homeowners or condo association and the insured does not have a residence there. Consequently, I believe there would be no liability coverage under the Homeowners policy.

With regard to property coverage, Section I -- Property Coverages, Coverage C—Personal Property states:

4. Property Not Covered

We do not cover:…

c. "Motor vehicles".

(1) This includes:

(a) Their accessories, equipment and parts; or

(b) Electronic apparatus and accessories designed to be operated solely by power from the electrical system of the "motor vehicle". Accessories include antennas, tapes, wires, records, discs or other media that can be used with any apparatus described above.

The exclusion of property described in (a) and (b) above applies only while such property is in or upon the "motor vehicle".

(2) We do cover "motor vehicles" not required to be registered for use on public roads or property which are:

(a) Used solely to service an "insured's" residence; or

(b) Designed to assist the handicapped;...

Since the insured is not using the golf cart to service his residence and a golf cart is not designed as a handicapped assistance vehicle, the HO policy will not cover damage to it.

The appropriate way to insure an owned golf cart is to add ISO endorsement PP 03 29 01 05, Miscellaneous Type Vehicle Endorsement – New York to the insured's personal auto policy.

Leave a Comment

Comments

[Donna Besch]

This was great information. Thanks.

[Stuart Fries]

The golf cart situation referred to, is when the insured is the OWNER
of the Golf Cart...

Where the insured is NOT the owner of the golf cart, is there full coverage to protect him, under his Homeowners Policy, while he is operating the golf cart anywhere?
Anywhere being: On the Golf course?
In his community going to the golf course?
At a marina, where is taking things to his boat?
Public road, NOT in the community, and golf cart
is NOT registered for State registration with DMV?

Stuart Fries

[Tim Dodge]

Stu,
The 2000 edition of the ISO Homeowners policy covers physical damage to property of others while it's on the part of the residence premises occupied by the insured. Therefore, I don't see it covering a non-owned golf cart in any of the situations you described. With regard to liability coverage, the policy covers a motor vehicle that is designed for recreational use off public roads and not owned by an insured (see Exclusion A.2.d.(1).) Based on this, I believe the policy will cover the insured's liability while operating a non-owned golf cart in any of these situations.

[Zev]

What about on a commercial policy (for a summer camp)? Is it covered under the standard ISO CG from? If yes, what happens if they drive it on a public road (without plates)?

[Tim Dodge]

Zev,
Interesting question. The CGL policy's definition of "mobile equipment" doesn't directly address golf carts, but part 12.a of the definition includes "vehicles designed for use principally off public roads." A golf cart would likely fall within that description unless state law requires it to be registered with the Department of Motor Vehicles, in which case it would be an "auto" for insurance purposes. Since the cart appears to come within the definition of "mobile equipment," I think the CGL policy will respond to a loss whether it happens on or off public roads. The driver may face law enforcement penalties for operating an unregistered vehicle on public highways, but that's another matter.

[Mendel]

Aproximatley 10 years ago we had a claim where a Golf cart drove over a childs foot (toes). This happened in a small seasonal camp/bungalow colony. The insurance company paid the claim. If I remeber correctly they paid $1,000.(the maximum of the medical coverage)

[Tim Dodge]

Mendel,
That makes sense to me. The Medical Payments Coverage in the ISO CGL form (Coverage C) excludes losses for bodily injury to an insured, to a person hired by an insured, to a person who normally occupies the premises, to a person eligible for workers' compensation benefits for the injury, to someone involved in athletic activities, injuries arising out of products or completed operations, or to injuries that are excluded under the Bodily Injury and Property Damage Liability Coverage (Coverage A). Since there is no exclusion for mobile equipment in Coverage A, it's logical that this would be covered under Medical Payments.

[Golfshop]

Golf cart that any injury or damage. Because you can be held legally responsible for any costs arising from such an accident can have this type of insurance certainly save you a lot of money and some headaches along way.While Most policies do not cover some of the things additional can be found on a golf cart, as personal belongings, wallets and phones there are some policy providers out there that will be happy to provide almost anything you can keep in your golf cart and to protect against theft or damage.

[בניית בריכות שחייה]

I totally agree with you. I like your way to represent post, so no one can misuse of the golf cart. Thanks for sharing this one.