Frank owns a power boat with a 100 horsepower motor. What is true regarding Frank's coverage for the boat under his Homeowner's policy?

Frank's coverage for his power boat under a Homeowner's policy is accurately described by stating he would have $1,500 property coverage for the boat but no liability coverage. Generally, standard Homeowner's insurance policies provide limited coverage for personal property, and this typically includes boats with low horsepower limits. Since Frank's power boat has a 100 horsepower motor, which exceeds the limits for liability coverage usually outlined in a Homeowner's policy, he would not have liability protection for incidents involving the boat.

The $1,500 property coverage represents the maximum limit that would apply to the boat under such a policy. This means while the physical boat itself may be covered for loss or damage (up to that limit), any suitability for liability stemming from its use is excluded due to the horsepower restriction. Understanding these limitations is crucial when evaluating insurance needs for higher-powered watercraft.