1. Forms
2. HO
3. HO-24-13

What the form is

The HO 24 13, titled "Incidental Low Power Recreational Motor Vehicle Liability Coverage," is an endorsement to a homeowners insurance policy. Its primary purpose is to modify the standard homeowners policy's motor vehicle liability exclusion to provide Section II (Liability) coverage for certain types of owned and non-owned low-power recreational motor vehicles. These vehicles often include motorized bicycles, motor-assisted bicycles, and motorized scooters that might otherwise be excluded from coverage.

Classes of business it applies to

This endorsement is used in personal lines homeowners insurance. It is particularly relevant for individuals or families who own or use low-power recreational vehicles that are not typically covered under a standard auto insurance policy and may have limited or no coverage under an unendorsed homeowners policy. Real-world examples include:

• A family that owns electric bicycles or scooters for recreational use in their neighborhood or on bike paths.
• An individual who occasionally rents a motorized scooter while traveling.

Special considerations

• Evolution of Coverage: The 2022 edition (03 22) of this endorsement significantly updated prior versions (like the 05 11 edition). Key changes include expanded coverage for owned motorized bicycles and scooters while being used off an "insured location" and an increase in the speed limitation for covered vehicles (from 15 mph to 28 mph on level ground in the 2022 version).
• Excluded Vehicles: It's important to note that this endorsement does not provide coverage for all types of recreational vehicles. For example, mopeds and motorized golf carts are generally still excluded under this endorsement.
• Alternative Endorsements: Insurance carriers may offer alternative endorsements if they wish to limit or exclude this exposure. These include the HO 24 03 (Non-Owned Motorized Bicycle And Motorized Scooter Liability Exclusion) or the HO 24 04 (Motorized Bicycle And Motorized Scooter Liability Exclusion).
• Interaction with HO 00 14: This endorsement is generally not used with the Homeowners Contents Comprehensive Form (HO 00 14), as the HO 00 14 itself often includes provisions for liability coverage for motorized bicycles and scooters.
• Definition of "Insured": For a "motor vehicle" covered by this endorsement, the definition of an "insured" is typically extended to include any person or organization legally responsible for the covered "motor vehicle" owned by an "insured." However, this does not usually include individuals using or having custody of the vehicle without the owner's permission.

Key information for agents and underwriters

• Risk Assessment: The increasing popularity and use of e-bikes, e-scooters, and similar devices represent a growing liability exposure. Underwriters should inquire about the ownership and use of such vehicles, including where they are operated (on or off the residence premises).
• Addressing Coverage Gaps: Standard homeowners policies often exclude or severely limit liability coverage for most motorized vehicles. This endorsement helps bridge that gap for specific low-power recreational vehicles. Agents should discuss this potential gap with clients who own or use these types of vehicles.
• Pricing Considerations: Broadening liability coverage through this endorsement will likely result in an additional premium.
• Underwriting Appetite and Alternatives: Underwriters need to be aware of their company's appetite for this exposure. If the HO 24 13 is not offered or desired, alternative endorsements like HO 24 03 or HO 24 04 may be appropriate to clarify the extent of (or exclusion of) coverage.
• Importance of Edition Dates: Agents and underwriters must pay close attention to the edition date of the HO 24 13 (e.g., 05 11 vs. 03 22) as coverage provisions have evolved. The 03 22 edition offers more comprehensive coverage for certain vehicles off-premises and has a higher speed threshold.
• Policy Review: Always review the specific language of the endorsement and the base policy to understand the full scope of coverage, limitations, and exclusions.