Question

George has a big house on an island on a small lake. There is no bridge connecting his island with the land; thus, the only way to reach his house is by using boat or helicopter. He owns a boat that he uses every day. As an insurance he feels that his boat should be covered jusk like any other personal property he owns. However, his insurer informs his that boats are exclulded as personal property under his homeower's policy.
a) Give some other examples of property that are usually excluded from homeowner's policy
b) Are they uninsurable? Explain your answer.

Answer 1

A typical homeowners' policy covers the loss due to normal happenings like fire,wind & lightening, damages suffered by self, damage to normal personal properties like the dwelling place & specified structures on it, & consequent liability due to the loss.

In the above case, even though the boat or helicopter may be an essential personal property item, the same does not fall under the category of NORMAL belonging of the Insured.

a. Aircraft held privately is not insurable under homeowner's policy-- as these are not a normal house-holder owning item & involves comparatively much higher risks and,so may involve higher rates of premium,depending upon different risk-levels.

b. They are also insurable ,but under different policies & not under homeowners' policy