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2. HO
3. HO-24-64

What the form is

The HO 24 64 Owned Snowmobile Liability Coverage endorsement is designed to be added to an Insurance Services Office (ISO) homeowners policy. Its primary purpose is to extend Section II coverages – Personal Liability (Coverage E) and Medical Payments to Others (Coverage F) – to include liability exposures arising from the ownership, maintenance, use, loading, or unloading of a snowmobile that is owned by an "insured" and specifically described in the endorsement or policy schedule. Standard homeowners policies typically exclude or significantly limit coverage for motorized vehicles like snowmobiles, especially when used off the "insured location". This endorsement fills that coverage gap for scheduled snowmobiles.

Classes of business it applies to

This endorsement applies to personal lines insurance, specifically for individuals who own snowmobiles and have a homeowners insurance policy. It is intended for personal recreational use of snowmobiles.

Real-world example: A family owns a snowmobile that they use on weekends for recreational trail riding in designated state forests, away from their home. If they were to cause an accident resulting in bodily injury to another person or damage to someone else's property while using the snowmobile, this endorsement, if attached to their homeowners policy, would provide liability coverage, subject to its terms and limits.

Special considerations

• Scheduled Vehicle: The snowmobile to be covered must be specifically listed (scheduled) on the endorsement or elsewhere in the policy, typically including its make, model, and serial number.
• Scope of Coverage: It covers liability for bodily injury and property damage, as well as medical payments to others, arising from the snowmobile's use. This includes entrustment of the snowmobile to others by an insured and vicarious liability for the actions of a child or ward, provided the use is with permission.
• Exclusions: Common exclusions include:
  • Use of the snowmobile for racing or speed contests.
  • Renting the snowmobile to others or using it to carry persons or property for a fee.
  • Use of the snowmobile without the owner's permission.
  • Liability if the snowmobile is, or should be, registered for use on public roads at the place of the occurrence (unless it's merely crossing a public road or used where legally permitted).
  • Bodily injury to an "insured" or a regular resident of the household.
• No Physical Damage Coverage: This endorsement typically does not provide physical damage coverage (collision or comprehensive) for the snowmobile itself. Separate coverage, such as an inland marine policy or a specific snowmobile policy/endorsement (like the PP 03 20 for a Personal Auto Policy), would be needed for that.
• No Uninsured/Underinsured Motorists Coverage: This endorsement does not provide Uninsured/Underinsured Motorists coverage.

Key information for agents and underwriters

• Verification: Agents should confirm that the insured owns the snowmobile and that all details (make, model, serial number) are accurately recorded for scheduling.
• Needs Assessment: Discuss the insured's snowmobile usage (where, how often, by whom) to ensure this endorsement is appropriate and to identify any potential coverage gaps.
• Explain Limitations: It is crucial to explain to the insured that this endorsement provides liability coverage only and does not cover physical damage to the snowmobile itself. Also, review key exclusions.
• Registration Status: Inquire about whether the snowmobile is registered or used in areas requiring registration, as this can impact coverage under the homeowners endorsement.
• Alternative Coverage: For comprehensive physical damage and potentially broader liability coverage, agents might discuss dedicated snowmobile policies or endorsements to a Personal Auto Policy (e.g., ISO's PP 03 20 Snowmobile Endorsement) as alternatives or supplements.
• Underwriting: Underwriters will assess the risk based on factors such as the snowmobile's power, the operators' age and experience, and the typical locations of use. The number of snowmobiles and prior loss history will also be considered.
• Policy Integration: Remind all parties that this is an endorsement that modifies the base homeowners policy; all other policy terms and conditions apply unless specifically amended by HO 24 64.