Final answer:
Under an HO3 home insurance policy, liability coverage is not typically extended to high-powered boats or certain motor vehicles, with some exceptions. In the scenarios provided, Mike's at-fault boat accident with a 16-foot, 100 H.P. outboard motor boat is likely not covered because such watercraft are usually excluded from standard HO3 policies (option C).
Step-by-step explanation:
The question you are asking relates to home insurance and specifically the liability coverage of an HO3 policy. An HO3 policy, which is a type of homeowners insurance, provides broad coverage for the home and personal property as well as personal liability coverage for the policyholder. However, there are certain exclusions. Looking at the situations:
- Mike used a 4-wheel ATV to haul yard clippings: HO3 policies typically do not cover liability for motor vehicles used off an insured location, but an ATV used for service on the premises may be covered.
- Mike rents the community center for his son's wedding reception: HO3 policies usually extend liability coverage for off-site events.
- Mike owns a 16-foot, 100 H.P. outboard motor boat: HO3 policies often exclude liability for certain watercraft, particularly those with high power or above a specific length.
- Someone falls at the house Mike is planning to live in: Generally, HO3 policies cover the homeowner's liability for accidents on their property.
Considering these points, the situation not covered for liability under an HO3 policy is most likely C, where Mike has an at-fault accident with his outboard motor boat, as these are commonly excluded due to their size and power.
Hence, the answer is option C.