Insured rented a 20′ pontoon boat with 30 hp motor for an afternoon. He struck a large rock poking hole in the left pontoon. He has AAIS GL-2 Ed 2.0 which states under 6. Watercraft " 'We' pay for the bodily injury or the property damage which results from the maintenance, use, loading, or unloading of a watercraft that is powered by outboard motors which total more than 25 horsepower, if: 3) the motors are not owned by an insured." " 'Property Damage' means physical injury to tangible property. This includes the loss of use." The company says there is no coverage and appears that it would be covered per above. Your thoughts please.

Montana Subscriber

While the policy does grant coverage for the boat in the language you listed under 6, it then takes it away under exclusions 1.c., where injury or damage which results from the "ownership, maintenance, use… or watercraft owned or operated by or rented or loaned to an 'insured'" are excluded. This is a liability policy; you may well find coverage under the insured's property policy, for property in the insured's care, custody or control.