Category Archives: aircraft accident

What is non-owned or renters insurance?

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What is non-owned or renters insurance?

Non-owned or as it is more commonly called, renters insurance, is a liability policy that can provide bodily injury, property damage and aircraft hull protection for a pilot that is flying an aircraft they do not own.

non-owned

“Do not own” is a key phrase. You do not have to own an aircraft to be found liable for damage or injuries. It is important to note that this is liability coverage; in addition, it is not only for rental aircraft. A borrowed, rented or even a flying club aircraft can put the
pilot in a position of potential liability.

Very simply put, liability means the coverage is used if the named insured is found liable for damage or injury to a third party. For example, if a person is flying an aircraft that has an engine failure or some other mechanical problem that is not the pilot’s fault and
damages occur, non-owned insurance would not necessarily pay the claim.

Many people feel they do not need to buy insurance on their aircraft and they can let their friends fly their aircraft if the friends have non-owned insurance and they are protected. Not true. If the pilot is not found liable, there is no coverage. When a renter signs the rental agreement, they are agreeing to pay the owner for the damages. Usually that consists of the paying the owners deductible. However, the Fixed Base Operator, flight school or the owner of the aircraft actually gives up their right to subrogation when they accept the claim. Once the claim is paid, the insurance company can go after the pilot or third party that was liable. That is the subrogation clause.

Non-owned comes in two basic parts. Bodily injury and property damage (BIPD) liability and hull damage liability.

So how much should you buy? Like any insurance product, check with an estate and financial adviser (or lawyer) to figure out what level you need to buy. However, be careful, non-owned is very reasonable protection, but it can cost a lot of money per year. Buying non-owned insurance often costs as much as an aircraft owner pays for owned insurance.

You have to buy BIPD as a minimum. Most buyers that have any level of assets (a home, car, etc) usually opt for at least a million dollars, usually with a $100,000 sub limit. This coverage is quite reasonably priced.

The high cost comes in the hull protection. One option is to buy enough to cover the total loss of the aircraft that you are flying. Another option is to buy enough to cover at least half the value. The reasoning is that there will probably be some salvage value.

If you have more questions, feel free to contact us.

Or if you need a quote, click here.

 

EXPERIMENTAL, AMATEUR-BUILT AIRCRAFT ACCIDENTS REMAIN BELOW FAA DECADE-LONG CHALLENGE GOAL

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Uptick in aircraft accidents in past year a reminder that continual safety focus is essential

EAA AVIATION CENTER, OSHKOSH, Wisconsin — (November 22, 2019) — While fatal aircraft accident totals in amateur-built aircraft remain at historic lows, a slight increase in the total for the last 12-month reporting period shows the continuing necessity for dedicated educational efforts to push the total even lower, according to the Experimental Aircraft Association.

The Federal Aviation Administration reports that for the 12-month period from October 1, 2018, to September 30, 2019, fatal accident totals for the experimental category overall, including amateur-built aircraft, racing aircraft, those used for exhibit only, research-and-development, and some types of light-sport aircraft, rose to 52 – five above the FAA’s “not to exceed” goal of 47 for the period. Of that total, 39 fatal accidents were in amateur-built aircraft, an increase of four from the previous reporting period.

FAA measures accident totals on an October-through-September annual basis to coincide with the federal government’s fiscal year. In addition, the National Transportation Safety Board earlier this month noted that fatal accidents in all categories of general aviation increased in calendar year 2018 after several years of decline.

“What this increase tells us is that enhancing safety is not simply a target number to be reached, but a continual effort to build on the positive foundation we have already established,” said Sean Elliott, EAA’s vice president of advocacy and safety. “We are pleased that the accident totals remain below the challenge goal FAA issued to us in 2010, when the agency asked us to reduce the accident rate by 10 percent over the ensuing decade. It is not enough to simply reach a number, however; we must keep a steady focus on making improvements, especially as the number of general aviation flight hours have increased over the past several years.”

Elliott noted that the overall fatal accident numbers for experimental category aircraft remain much lower than other recreational pursuits, such as boating, skiing and snowboarding, and driving all-terrain vehicles.

EAA has worked closely with the FAA and NTSB on recommendations to reduce fatal accidents, including through participation in the FAA General Aviation Joint Steering Committee that EAA has co-chaired for the past three years. Efforts have also included more than 2,500 copies of the one-year old EAA Flight Test Manual now in the hands of amateur-built aircraft owners and the increasing use of an additional safety pilot during initial flight testing in amateur-built aircraft.

“With already very small numbers involved, a few additional accidents can create a percentage-rate anomaly, so it’s important to focus on driving the overall accident numbers lower,” Elliott said. “We must focus on training, situational awareness, and good pilot skills to complement the ever-improving technology that is part of today’s aircraft cockpits.”

About EAA

EAA embodies The Spirit of Aviation through the world’s most engaged community of aviation enthusiasts. EAA’s 230,000 members and 900 local chapters enjoy the fun and camaraderie of sharing their passion for flying, building and restoring recreational aircraft. For more information on EAA and its programs, call 800-JOIN-EAA (800-564-6322) or go to www.eaa.org. For continual news updates, connect with www.twitter.com/EAA.

Aviation insurance rates on the rise!

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Aviation insurance rates on the rise!

Aviation insurance rates are on the rise. For years the aviation insurance market has been pretty slow in increasing the premiums.

But if you have followed my posts and articles, you will know that in the past year rates have been going up and it doesn’t look like it will stop anytime soon.

There are lots of reasons why the increases could be happening: from airline crashes, general aviation crashes, bad weather, to the financial markets. Whatever the reason for the increases. Here are a few things you can do to manage your insurance premium:

  1. Make sure your broker has your most updated and accurate pilot hours.  Keep flying and putting on hours. It’s an excuse to fly.
  2. If you have hull coverage, re-evaluate the insured value of your aircraft. Are you insuring it for enough or too much?
  3. Get that advanced rating. While an instrument might not save you a huge percentage, it might open the market for more options.
  4. Keep it simple. Some of the best insurance rates are on fixed tri-gear aircraft. Thinking of moving up to a retractable gear or tail wheel aircraft, be prepared that the insurance rates are going to be higher.
  5. If you are an older pilot don’t let your insurance expire (lapse). Age is also a barrier to getting insurance coverage.

And as a final thought, please note, Insurance Agents/Brokers don’t have any control over the rates of the insurance companies.  There’s the old saying, “Don’t shoot the messenger”, and that applies here.