C. Hook purchased a six-metre houseboat. He insured the boat against all risks in the amount of $50,000 under his home ownership policy. A special condition was attached to the policy respecting the boat:
SPECIAL CONDITION: Navigation limits: warranted that the named houseboat will be used only in the navigable waters of the provinces of Ontario and Quebec including the Great Lakes.
During summer holidays, Hook takes his family on a boat excursion through the river and lock system to the St. Lawrence River and the Thousand Islands. Their trip took them to a few ports of call in upstate New York. When the summer is over Hook prepares the boat for winter storage. In the process of removing the boat from the water a cable breaks and the boat is dropped six metres to the ground. The boat is severely damaged. The adjuster's report notes the earlier summer excursion into U.S. waters.
a. What arguments would be made by the insurance company regarding this claim and how may they be substantiated?
b. The insurance company derives liability on the policy citing the above condition. You are retained by Mr. Hook to outline his arguments to the court.
c. What right(s) does the insurance company have should it pay the claim?

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The Answer of C. Hook purchased a six-metre houseboat. He insured the boat against all risks in the amount of $50,000 under his home ownership policy. A special condition was attached to the policy respecting the boat:
SPECIAL CONDITION: Navigation limits: warranted that the named houseboat will be used only in the navigable waters of the provinces of Ontario and Quebec including the Great Lakes.
During summer holidays, Hook takes his family on a boat excursion through the river and lock system to the St. Lawrence River and the Thousand Islands. Their trip took them to a few ports of call in upstate New York. When the summer is over Hook prepares the boat for winter storage. In the process of removing the boat from the water a cable breaks and the boat is dropped six metres to the ground. The boat is severely damaged. The adjuster's report notes the earlier summer excursion into U.S. waters.
a. What arguments would be made by the insurance company regarding this claim and how may they be substantiated?
b. The insurance company derives liability on the policy citing the above condition. You are retained by Mr. Hook to outline his arguments to the court.
c. What right(s) does the insurance company have should it pay the claim?

C Hook Purchased a Six-Metre Houseboat