Mobile Property Coverage

LMCIT can provide physical damage coverage for mobile property

Coverage is available for damage to mobile property under the LMCIT property coverage. Mobile property is generally defined as something that is often moved from one location to another, such as police dogs, lawnmowers, Zambonis, firefighter turnout gear, and tractors.

New coverage terms taking effect on Nov. 15, 2016

Members formerly needed to report and schedule individual units of mobile property only if the replacement cost of the unit exceeded $25,000. For members with renewals on or after Nov. 15, 2016, the terms of the coverage have changed. Under the new system, members will only need to indicate whether or not they want to cover mobile property. If the member chooses to cover mobile property, all mobile property the member owns will be automatically covered, subject to a $100,000 per unit limit. That is, it will no longer be necessary to schedule each individual piece of equipment.

In the event of a loss, LMCIT will pay for the least of:

  1. The cost to repair the unit.
  2. 200% of the fair market value.
  3. The cost of a new unit.
  4. $100,000.

If more than $100,000 in limit is needed for an individual piece of equipment, it can be increased for that unit by endorsement for an additional premium charge. Note, if the cost of an individual new unit is less than $100,000 or the fair market value is less than $50,000, there is no need to purchase a higher limit on that unit.

This change should require less reporting and tracking of assets on the part of members and agents, but thought will need to be given for high-value units. Members will need to decide if $100,000 in coverage is adequate for a specific unit. Contact your LMCIT underwriter if you need assistance making these estimates.

As was the case under the former coverage arrangement, mobile property units that are newly acquired mid-term are automatically covered for up to $500,000 per unit until the next renewal date. If more than $500,000 is needed for a newly acquired unit, it must be reported to LMCIT right away in order to secure higher limits.

New rates taking effect on Nov. 15, 2016

Because of the coverage changes taking place, a reworked rating system was designed to calculate premiums for the mobile property coverage.

The standard rate for blanket mobile property coverage will be:

  • 7 percent of the member’s manual premium (this is the amount prior to deductible credits or adjustments for agent commissions) for fixed property coverage (fixed property is buildings, contents, and property-in-the-open)
  • 3 percent for standalone electric generation utilities and housing and redevelopment authorities.

In either case, a minimum premium amount of $100 will apply.

The rate to increase the mobile property limit beyond $100,000 for individual units will be $2.00 per $1,000 of additional value.