A federal appeals court recently ruled that a fire which began in a van and burned down a house was not covered under the owner's Virginia auto insurance policy, on the grounds that the vehicle was not being used for transportation at the time.

The owner, a construction worker, was using the vehicle to store tools and equipment while working on the home, according to Online Auto Insurance News. The fire is believed to have resulted from equipment malfunctioning inside the vehicle, which the worker's insurance provider contended was not covered under his auto insurance policy since it was essentially sitting still and being used as storage.

Instead, the appellate court reversed an earlier ruling, determining that the auto insurance policy applies to cars being used as vehicles, under Virginia law. This situation did not qualify, since the vehicle was not being driven, absolving the auto insurer of liability.

Auto insurance policyholders should review their policies and consider purchasing comprehensive coverage. Broader coverage is typically more costly, but may apply in wider circumstances.