North Carolina Adjuster Practice Exam

Which loss would NOT be covered under Part D-Coverage for Damage to Your Watercraft in a Personal Watercraft Policy?

1. Damage to the watercraft itself

2. Tim damaging another boat

3. Theft of the watercraft

4. Damage to personal items on the watercraft

The correct answer is: Tim damaging another boat

Part D of a Personal Watercraft Policy specifically addresses coverage related to the watercraft itself as well as various incidents involving the watercraft. This section typically covers damage that occurs to the insured's own boat, theft, and certain damages incurred to personal items while on board. Damage caused by the insured watercraft to another vessel falls outside the scope of coverage provided by Part D. This type of incident is more appropriately addressed by liability coverage, which is designed to protect an insured against claims from third parties for damage they may cause to others' property or personal injury. In contrast, damage to the watercraft itself, theft of the watercraft, and damage to personal items on the watercraft are all explicitly considered within the coverage parameters of Part D. Thus, incidents involving the insured's liability for damaging another boat would not be covered under this section.