West Virginia Property and Casualty Licensing Practice Exam

If a family takes their 50-horsepower outboard motorboat to a lake on a trailer towed behind their personal auto, what type of insurance policy covers the boat for physical damages?

1. Homeowners insurance

2. Boatowners insurance

3. Automobile insurance

4. Marine insurance

The correct answer is: Boatowners insurance

Boatowners insurance is specifically designed to provide coverage for physical damages to boats and personal watercraft. This insurance typically covers various types of risks associated with owning and operating a boat, including damages from accidents, theft, vandalism, and certain types of liability protection. Since the question pertains to a 50-horsepower outboard motorboat, it falls under the category of personal watercraft, which is best covered by a boatowners policy. While homeowners insurance may offer limited coverage for personal property, it typically does not provide comprehensive protection for boats, especially if the boat is being used on the water. Automobile insurance primarily focuses on vehicles rather than watercraft and would not provide adequate coverage for damages incurred while the boat is in use. Marine insurance, while it deals with the transportation and use of boats, is often more associated with commercial shipping and larger vessels rather than personal watercraft. In this scenario, boatowners insurance is the most appropriate and comprehensive option to protect the boat from physical damages while it is being towed and when it is in use on the water.