Endorsements & Optional CoveragesQuestion 452 of 474
A $6,000 fishing boat and its trailer are stolen from the insured's driveway. Under Coverage C of an unendorsed form, the policy pays:
a.$6,000, the full value of the boat
b.$1,500, the watercraft special limit
c.$0, as theft of a boat is excluded
d.$2,500, the business property limit
Explanation
Watercraft, including their trailers, furnishings and equipment, carry a special limit of $1,500 under Coverage C, so the loss is paid at $1,500 and the owner absorbs the rest. The loss is not excluded, merely capped, which is why a boat of any real value belongs on a scheduled watercraft endorsement or a separate boat policy. The $2,500 figure applies to business property on the residence premises.
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