Our insured purchased a motorized surfboard called a Lift eFoil. There seems to be confusion as to whether this would be covered under the homeowner liability. The insurance company "isn't sure". When we call companies who insure watercraft, they don't have a product to insure it. Does the homeowner liability provide coverage for a motorized surfboard?
New York Subscriber
You have an interesting question. An eFoil has a propeller and motor and can go up to 30 miles per hour. They weigh between 35 – 65 pounds and generally cost $10-12,000. Your insured may want to consider scheduling it. You could add it to the HO 04 61 Scheduled Personal Property under other property. The HO 04 65 Coverage C Increased Special Limits of Liability has been updated as of March 2022, and the new form allows an insured to increase the special limits on watercraft; the May 2011 version does not.
First, we need to determine what the craft is in relation to the homeowners policy. Under the definition of aircraft, hovercraft, motor vehicle and watercraft liability the definition of Watercraft is : " a craft principally designed to be propelled on or in water by wind, engine power or electric motor…" As the eFoils have an electric motor and are designed for use on the water they are a watercraft.
The foils generate 3,900 watts of energy, which translates to 5.22 horsepower according to the conversion table on the internet. (We are not experts in propulsion). The policy states that horsepower means the maximum power rating assigned to the engine or motor by the manufacturer, and the eFoils do not have such a rating that we can find. The horsepower is necessary since the exclusion uses horsepower as a determining factor for exclusions and exceptions.
The " watercraft liability" exclusion has exceptions for certain types of craft. Exceptions that would apply to the eFoil are as follows:
"Is not a sailing vessel and is powered by: One or more outboard engines or motors with: 25 total horsepower or less"
Since the craft is propeller driven, we are considering it an outboard motor. Therefore, the standard homeowners policy should provide liability coverage. The HO 00 03 03 22 has revised the watercraft liability section some but the exception to the exclusion for such craft is the same, so there is coverage.
The Watercraft endorsement HO 24 75 is designed for those with more than 25 horsepower, so that would not apply to this craft. The Watercraft policy WT 00 01 looks like it could fit but I suspect underwriting eligibility requires more of an actual watercraft than this.