Under what circumstances would the liability section of the homeowner policy cover an inboard motorboat owned by the insured?

The liability section of a homeowner policy typically provides coverage for certain types of watercraft based on their size, usage, and where they are stored. In the context of the choices provided, coverage is specifically extended when the inboard motorboat is stored in a garage on the insured premises. This situation demonstrates that the boat is part of the insured's personal property located at their home, which falls under the general liability coverage of the homeowner policy.

Regarding the other options, while they discuss the usage and specific conditions surrounding the motorboat, they do not align with the standard provisions that dictate when liability coverage applies. For instance, the horsepower limit and use on certain types of water may generally dictate coverage under specific endorsements rather than the homeowner policy itself. Additionally, lending the boat to a friend introduces potential liability exposures that the policy typically does not cover, as liability might not extend to situations involving additional parties unless specifically stated in the policy. Thus, the correct answer reflects the homeowner policy's design to protect the insured when personal property—including, in this case, a motorboat—is stored on the premises.