What does the liability coverage extension for rented boats cover?

Liability coverage extensions for rented boats typically pertain to specific types of watercraft and their engine sizes. In this case, the correct option specifies inboard motor boats not exceeding 50 HP. This aligns with common insurance policy terms that often delineate coverage based on the type of power the boat uses, as certain risks and safety considerations differ among various boat types.

Rented inboard motorboats are frequently covered under liability extensions, providing protection against damages or injuries caused during their use. The specified horsepower limit is critical because it establishes the scope of coverage; boats with higher horsepower could incur higher risks and potential liabilities, which insurers may choose to exclude.

The other options entail different types of crafts or horsepower limits that do not adhere to the standard liability coverage terms for rented boats. For instance, outboard motor boats up to 30 HP may not be included as these can fall under different coverage conditions, while sailing vessels exceeding 30 feet introduce different risk factors. Therefore, the liability coverage extension for rented boats is accurately described as encompassing inboard motor boats that do not exceed the specified horsepower limit.