Since When is Being Neighborly Excluded?

Today I read a tragic story about a man that was being neighborly by mowing his neighbor's grass.  The man was on his own riding mower in the neighbor's yard when his three year-old grandson ran over to greet him. Before he could stop the mower, the man ran over his grandson, causing life-threatening injuries. Part of the toddler's arm had to be amputated.  So sad.

Not that the child's family would sue the grandfather for negligence, but in today's litigious society, an unrelated third party might just elect to sue for damages.  Would the good neighbor's homeowners policy provide liability protection?  It depends.

Many major insurance companies use the same Homeowner insurance forms for their policies.  These forms are written and distributed by the Insurance Services Organization (ISO).  A long-standing ISO homeowner form, dated 1991, would provide liability protection for this incident because lawn mowers would fall into this category of covered vehicles:  

We do cover..."Vehicles or conveyances not subject to motor vehicle registration which are used to service an 'insured’s' residence;"

However, a newer version of the ISO homeowners form, dated 2000, precludes coverage in this instance.  The covered vehicle definition states:

"We do cover 'motor vehicles' not required to be registered for use on public roads or property which are used solely to service an 'insured's' residence."

So, just because the riding mower was not used solely to service his own residence, Grandpa has no liability protection.

What?   Is that what ISO intended when they updated this form?  Have all insurance companies adopted the 2000 form?  Is there anyway to get coverage for this type of exposure?

I have no way of knowing if this was the intention of the powers-that-be at ISO, but I am hoping it was not.  No, not all insurance companies are using the 2000 form.  One possible way to get protection is through your personal umbrella policy. However, each company has its own umbrella policy form, so it needs to be reviewed to make sure the coverage is in place.


When in doubt as to if you have the proper coverage, always consult your Trusted Advisor Independent Insurance Agent.