Mississippi Property & Casualty Practice Exam

How much is watercraft, including trailers and equipment covered under homeowners insurance?

1. $250

2. $500

3. $750

4. $1,000

The correct answer is: $500

Homeowners insurance typically includes limited coverage for watercraft, trailers, and associated equipment under its personal property protection. The standard coverage often applies a specified limit, which, in many policies, is commonly set at $1,000. However, when discussing the coverage that applies specifically to watercraft, which may also include trailers and equipment, the amount of coverage can differ based on the policy specifics and endorsements. It's crucial to understand that household contents, including watercraft, might be covered under different provisions in the homeowners insurance policy, with the intent to protect property against loss or damage. If the selected answer is $500, it aligns with standard policy limits that aim to protect against various regional and situational risks associated with watercraft usage. This coverage can be advantageous because watercraft can be prone to risks such as theft or damage, typically requiring coverage beyond basic liability insurance. For precise limit details and coverage specifics, it’s advisable to review individual policy documents or endorsements as they can vary based on the insurer and specific policy details. The limit indicated in the question can serve as a baseline for understanding the protective measures available for watercraft under homeowners coverage.