A thin boat at sea circles island home (10)

I believe the answer is:

habitation

'home' is the definition.
(I know that habitation is a type of home)

'a thin boat at sea circles island' is the wordplay.
'at sea' is an anagram indicator.
'circles' indicates putting letters inside.
'island' becomes 'i'.
'a'+'thin'+'boat'='athinboat'
'athinboat' anagrammed gives 'habitaton'.
'habitaton' placed around 'i' is 'HABITATION'.

(Another definition for habitation that I've seen is " Residence".)

I've seen this clue in The Telegraph.

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