Endorsements & LiabilityQuestion 98 of 158
Coverage E on a standard HO-3 excludes liability for watercraft above certain size and horsepower thresholds. An insured who owns a 20-foot powerboat with a 90-horsepower outboard motor will most appropriately:
a.Add a Watercraft endorsement to the homeowners policy or purchase a separate boatowners policy to cover liability arising from the boat
b.Rely on the homeowners policy as written because all watercraft are covered with no limits
c.Add an Earthquake endorsement to cover the boat
d.Rely on personal auto liability, which always extends to boats
Explanation
The HO Coverage E exclusion for watercraft removes liability coverage for boats above defined size/horsepower thresholds (the exact limits vary, but a 20-foot, 90-hp powerboat is typically EXCLUDED). The insured needs either a Watercraft endorsement (where available) or, more commonly, a separate boatowners or yacht policy that provides hull and liability coverage. Personal auto policies do NOT cover boats, and the Earthquake endorsement is unrelated.
Law Reference: ISO HO Coverage E exclusions; ISO HO 24 75 WatercraftPractice all 158 questions free — no signup required.
Related questions on this topic
- Coverage F medical payments to others on a homeowners policy is BEST described as:
- Which pairing of endorsement to covered loss is CORRECT?
- An insured runs a small in-home tutoring business out of her residence. Which statement is MOST accurate about the homeowners liability for this exposure?
- An applicant for a Personal Umbrella Policy has $50,000/$100,000 auto bodily injury limits and a $100,000 HO Coverage E limit. The umbrella insurer requires $250,000/$500,000 auto and $300,000 HO E underlying. What is the MOST likely underwriting outcome?
- The standard HO-3 generally excludes liability for motor vehicles, with limited exceptions. Coverage for a snowmobile or ATV used OFF the residence premises is BEST obtained how?
- The insured's dog bites a jogger in a public park three blocks from the home. Assuming no policy exclusion for the specific breed and no prior bite history, how does the standard HO Coverage E generally respond?
Last reviewed: · editorial process
PrepPass Editorial Team · Verified against California Personal Lines Insurance License Exam · How we review