54. Which of the following watercraft could the insured purchase and be assured it is automatically covered for liability under their homeowners policy?
Answer: C
An outboard boat with a 15 horsepower engine is automatically covered for liability under the homeowners policy.
An outboard boat with a 15 horsepower engine qualifies for automatic liability coverage under the insured's homeowners policy, ensuring peace of mind when engaging in recreational boating activities.
A) A 30 foot sailboat
A 30 foot sailboat typically exceeds the size limitations for automatic liability coverage under most homeowners policies. Such policies often do not extend coverage to larger vessels, which means the insured would not be assured liability coverage for this type of watercraft.
B) A 50 foot sailboat
A 50 foot sailboat is significantly larger than the coverage limits set forth in standard homeowners policies. As a result, it would not be automatically covered for liability, leaving the insured potentially exposed to significant financial risk.
C) An outboard boat with a 15 horsepower engine
An outboard boat with a 15 horsepower engine is a type of watercraft that falls within the coverage parameters established by homeowners insurance policies. This automatic coverage provides liability protection, making it a safe option for insured individuals.
D) An outboard boat with a 50 horsepower engine
An outboard boat with a 50 horsepower engine exceeds the horsepower limits specified in many homeowners policies. Therefore, it would not receive automatic liability coverage, putting the insured at risk for any liabilities arising from its use.
Conclusion
The outboard boat with a 15 horsepower engine is the only option that aligns with the automatic liability coverage provisions of homeowners policies, providing necessary protection for the insured. All other options exceed size or horsepower limitations, resulting in a lack of coverage and increased liability exposure.