What the form is
The HO 24 04, titled Motorized Bicycle And Motorized Scooter Liability Exclusion, is an endorsement to homeowners and renters insurance policies. Its primary function is to completely remove any liability coverage for bodily injury or property damage arising out of the ownership, maintenance, use, loading, or unloading of motorized bicycles or motorized scooters. This exclusion applies whether the motorized bicycle or scooter is owned by the insured or not (non-owned). Insurers utilize this endorsement to explicitly preclude coverage for risks associated with these types of vehicles, which have become increasingly prevalent.
Classes of business it applies to
This endorsement is designed for use with various ISO (Insurance Services Office) homeowners (HO) forms, including renters policies (e.g., HO 00 04, HO 00 14) and owner-occupied dwelling policies (e.g., HO 00 02, HO 00 03, HO 00 05). It is relevant for any personal lines insurance client who owns, rents, or might operate a motorized bicycle or scooter. For example:
- An individual who owns an electric scooter for commuting or recreation.
- A family whose members might rent e-bikes or e-scooters while on vacation or in their city.
- Insureds with a newer policy form like the HO 00 14, which may expressly grant some coverage for such vehicles that the insurer wishes to remove.
Special considerations
It's crucial to understand that the HO 24 04 is an exclusionary endorsement, meaning it takes away coverage that might otherwise be present or implied. Given the rising popularity and use of e-bikes and e-scooters, the presence of this endorsement can create a significant coverage gap for insureds if they are involved in an accident causing injury or property damage to others while using such a device. Some newer policy forms, like the HO 00 14 (Contents Comprehensive Form for renters), specifically grant coverage for motorized scooters and bicycles; this endorsement serves as a direct way for insurers to remove that granted coverage. This form is part of the 2022 ISO homeowners program revisions, reflecting an industry response to evolving risks.
Key information for agents and underwriters
Agents: It is vital for agents to clearly communicate the impact of this exclusion to policyholders. If an insured owns or frequently uses motorized bicycles or scooters, agents should discuss potential liability exposures and whether alternative coverage options (e.g., a separate specialty vehicle policy, if available) might be necessary. Misunderstanding the lack of coverage could lead to significant uninsured losses for the client.
Underwriters: This endorsement provides underwriters with a tool to manage and control the liability exposure associated with motorized bicycles and scooters. The unendorsed homeowners policy might provide some coverage, for instance, for non-owned vehicles designed for recreational use off public roads, or through specific grants in forms like the HO 00 14. By attaching HO 24 04, underwriters can achieve a more predictable risk profile by eliminating this specific exposure. Pricing considerations may be minimal for adding the exclusion itself, but its absence could imply a broader risk acceptance by the insurer. Risk assessment should involve inquiring about the ownership and use of such vehicles by household members. While one source specifically lists the HO 24 04 03 22 for Virginia , ISO forms are often part of multistate filings and intended for broader use.