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:
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 WatercraftThis topic, taught in full in the Personal Lines Insurance Producer guide. Personal Lines Insurance Producer — Complete Study Guide (2026) — PDF + EPUB, $19.99 · 14-day refund →
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