Kit Car Coverage

    Posted by MAIA on May 20, 2019, 12:01:00 AM


    This question was answered based upon current rules, regulations & statutes in effect on May 1, 2019

    I called this afternoon and was directed to email you to pick your brain as a benefit of membership. I’m hopeful you can point me in the right direction.  We have an insured who has recently purchased a cobra Kit car. It is still in boxes to be put together - with a chassis with 4 wheels, valued at 50k, stored in a locked and alarmed 3 car garage in Franklin Ma. We Struggling to find a way to cover this risk while it’s being built. 

    Looks like Hagerty would cover it, except that the insureds do not have a 25+ yr old auto, and without it they can’t insure it. All other carriers have said no, and I’m wondering about either a potential inland marine policy or a standalone policy for the parts until it’s completed? I’m assuming there is no coverage through the standard HO3 for auto’s.

    Please let me know your thoughts. I appreciate it!


    Irene Morrill: None of the ISO HO policy editions cover “motorized land conveyances” – HO-91 or “motor vehicles” –

    The HO-91 Property not covered exclusion states:

    1. Motor vehicles or all other motorized land conveyances. This includes:
      1. Their equipment and accessories; or
      2. Electronic apparatus that is designed to be operated solely by use of the power from the electrical system of motor vehicles or all other motorized land conveyances. Electronic apparatus includes:

           (1)  Accessories or antennas; or

     (2)  Tapes, wires, records, discs or other media;
           for use with any electronic apparatus.

    The exclusion of property described in  3.a. and 3.b. above applies only while the property is in or upon the vehicle or conveyance.

    So parts not attached can be covered ….the “thing” should be covered until the motor is put in …then it is only covered if it services the residence or designed to assist the handicapped.

    The HO-2000 is similar:

    1. "Motor vehicle" means:
      1. A self-propelled land or amphibious vehicle; or
      2. Any trailer or semitrailer which is being carried on, towed by or hitched for towing by a vehicle described in a. above.

    Property not covered under Coverage C:

    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".

    HO-2011 has same definition of “motor vehicle” but a more “complete” exclusion:

    1. Property Not Covered

    We do not cover:

    c. "Motor vehicles".

    This includes a "motor vehicle's" equipment and parts. However, this Paragraph 4.c. does not apply to:

                  (1)  Portable electronic equipment that:

                       (a)  Reproduces, receives or transmits audio, visual or data signals; and

                       (b)  Is designed so that it may be operated from a power source other than a "motor vehicle's" electrical system.

    There is NO give back for parts or accessories not attached.

    Could all the forms cover the “kit” before it is put together or the motor put it … it seems so …but once the motor is in … the HO-2011 will probably deny everything including non-attached parts whereas the HO-91/2000 can still cover non-attached parts

    This document is not a legal opinion and should not be relied upon as such. The intent of this document is to provide a general background regarding the topic or topics discussed, not to provide legal advice. Producers and agencies should consult an attorney regarding specific situations and specific questions with respect to the topic or topics covered in this document. Neither the Massachusetts Association of Insurance Agents, Number One Insurance Agency nor any of its employees shall be responsible for any errors or omissions regarding any statements made in this document, nor any errors or omissions regarding any statutes, regulations, court rules, and/or any other government documents cited in this document.

    Topics: Personal, 2019

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