Question 54

An outboard boat with a 15 horsepower engine is automatically covered for liability under the homeowners policy.

Homeowners policies typically provide coverage for certain types of watercraft, specifically those that are smaller and have lower horsepower ratings. An outboard boat with a 15 horsepower engine falls within these guidelines, ensuring automatic liability coverage.

A) A 30 foot sailboat

A 30 foot sailboat exceeds the typical size limitations set by homeowners insurance for automatic coverage. Such larger watercraft usually require separate insurance policies due to the increased risks and liabilities associated with their operation.

B) A 50 foot sailboat

Similar to the 30 foot sailboat, a 50 foot sailboat is significantly larger and does not qualify for automatic coverage under most homeowners policies. The size and potential liability of larger sailboats necessitate specialized insurance coverage.

C) An outboard boat with a 15 horsepower engine

This option is correct as homeowners policies often include coverage for outboard boats with engines up to a certain horsepower limit, typically up to 25 horsepower. The 15 horsepower engine makes this watercraft eligible for automatic liability coverage.

D) An outboard boat with a 50 horsepower engine

An outboard boat with a 50 horsepower engine exceeds the horsepower limit set by homeowners policies for automatic coverage. Such a boat would generally require a separate insurance policy due to the higher risk associated with its operation.

Conclusion

The correct answer, an outboard boat with a 15 horsepower engine, is automatically covered under homeowners insurance due to its compliance with the policy's size and horsepower limitations. All other options either exceed size or horsepower restrictions, thereby failing to qualify for automatic liability coverage under the homeowners policy. This distinction is crucial for ensuring adequate insurance protection for watercraft.