Does Your Auto or Home Policy Cover Motorized Toys?

This holiday season, many of us will receive motorized toys (e.g., boats, RVs, golf carts, watercraft (personal or otherwise), and motorhomes or campers) as gifts from friends and family. But before you take your new toy out to play, it’s important to consider whether or not you have coverage in place should an accident occur.

In this article, I’ll outline if you have coverage, how much coverage you might realistically expect, and what you might pay. Let’s start with the basics by going over a handful of real-world examples.

Does Your Auto or Home Policy Provide Coverage For Motorized Toys?

The bottom line is that most homeowners and auto policies do not provide automatic coverage for all motorized toys. There are some exceptions to this, though.

Are Watercraft Covered Under a Home Policy?

For example, on an HO-3 form, watercraft are covered for the perils of windstorm or hail. Here’s the verbiage: “This peril includes loss to watercraft of all types and their trailers, furnishings, equipment, and outboard engines or motors, only while inside a fully enclosed building.” This policy form also covers the peril of theft.

However, the special limits of liability section limits property damage coverage to $1,500, “including [watercraft] trailers, furnishings, equipment, and outboard engines or motors.”

On the other hand, when it comes to liability, coverage automatically applies to watercraft, unless you operate it in a race, rent it to others, carry persons or cargo for a charge, or use it for any business purposes. However, even if these scenarios don’t apply, there’s still no coverage unless the watercraft is stored, less than 26 feet in length, is a sailing vessel with a motor less than 50 horsepower, or a non-sailing vessel with 25 horsepower or less.

Are Watercraft Covered Under an Auto Policy?

When it comes to an auto policy, liability coverage automatically extends to anything you’re towing, whether it’s a watercraft, recreational vehicle, or just a trailer by itself. However, there is no coverage for damage to the item being towed or liability coverage once the watercraft is in use.

Are Golf Carts Covered Under a Home Policy?

An HO-3 includes liability coverage for golf carts as long as they’re not built to carry more than “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” a golfing facility.

Are Golf Carts Covered Under an Auto Policy?

Golf carts are not automatically covered under an auto policy since they’re typically not classified as “motor vehicles.” However, as with watercraft, liability coverage automatically extends from an auto policy if you’re towing your golf cart.

Are ATVs Covered Under a Homeowners Policy?

Certain owned “motor vehicles,” such as ATVs, are covered for property damage under an HO-3 as long as they’re not required to be registered for use on public roads or are either used to service an insured’s premises or to assist a handicapped individual.

However, physical damage and liability coverage for ATVs ends at your property line. Therefore, if you regularly take your ATV on third-party trails, you’d need to purchase a standalone policy or add coverage to your homeowners via an endorsement.

Also, some states require proof of insurance if you ride your ATV on state-owned land.

Are ATVs Covered Under an Auto Policy?

A standard auto insurance policy does not cover most ATVs since they’re not designed to be operated on public roads.

How Much Does It Cost to Insure Motorized Toys?

Suppose you decide that you need additional coverage for a motorized toy. In that case, some carriers require that you purchase separate policies, whereas others offer coverage through endorsements attached to your home or auto policies.

What you pay for motorized toy insurance can vary greatly, depending on factors like:

The type of vehicle you’d like to insure;
Engine size;
How often it’s used;
The location(s) where it’s used;
Loss history/the likelihood of a claim;
The company you insure it through;
Whether a carrier offers coverage as an endorsement to your home or auto policy or a standalone policy.

With these details in mind, you might expect to pay as little as $75 to $100 per year to properly insure your motorized toy.

Do You Have Additional Questions About Insuring Your Motorized Toy?

Do you own a motorized toy, such as a golf cart, ATV, or watercraft? If so, contact the helpful professionals at IHS Insurance Group, and we’ll answer all of your important questions!

Need a FREE Quote or have questions regarding Home or Auto Insurance Coverage? We have three convenient ways to reach us:

If you prefer to talk to a licensed agent directly, please call (866) 480-5063.
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We look forward to speaking with you today!

Michael Steele