Category Archives: aviation insurance

Question from a reader – Should I buy an aircraft to learn to fly.

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Q.  Sky, I’m looking at getting a private pilot rating in the next couple of years, and have considered purchasing an airplane to use during instruction.  I have been told it would help me save on rental fees and it does seem, that you can buy more affordably than rent!  However, can a student pilot get (affordable) insurance on his personal aircraft while learning to fly?  Seems there may be a contradiction here? 

I enjoy reading your articles; they are always informative and entertaining.
I would appreciate any information you might provide in response to my question,

A.  I do think buying can be a good way to go.  Ownership frees up the planes schedule and you can get it whenever you want.  No overnight charges if you take a trip.  You know the maintenance history and as an owner, you get comfortable with the aircraft.
But, the biggest problem is buying something that might not be what you want at a later time.  Surprisingly, the wants and needs get mixed up, so what you want, might be different than what you really need.  If possible fly a few different models of aircraft.  That might mean going to a few different FBO’s and getting in their aircraft.   But after you get a few hours, you will be able to tell the difference between a Cessna 150 and a Cherokee 140.  You know, high and low wing, landing, visibility, all these factors are important to every pilot in some manner.  Make sure you try them all out before you purchase.

After the decision, a lot depends on what is “affordable” to you.  If you were to buy a $25,000 Cessna 172 or Cherokee 140 you would probably spend about $1200 a year in full coverage insurance.  A Cessna 150 would be a little bit less because of only having two seats.  A tailwheel aircraft would be a little more.

Do you need DRONE insurance?

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Depends on what you are doing with the drone, your appetite for risk and how deep your financial pockets are. There is an anonymous saying I like “flying is not inherently dangerous, but crashing is”.  If you have a risk of crashing you might have a need for insurance.
Risk can be handled in a number of ways.  You can take the risk on yourself (self-insure), you can stay away from risk (don’t fly), reduce the risk (better training, safety systems, only fly on calm days) and you can transfer the risk to someone else. 
Insurance is basically transference of risk. You are transferring the risk of your drone to the insurance company for a fixed smaller amount of premium. They hope you will not crash and they will not have to pay a claim. But for that privilege they have requirements that you are to follow. 
When do you need to consider buying insurance for your drone?
Are you flying as a hobby or recreational use?
If you are flying your drone as a hobby or recreation and you are not operating in the commercial category, most likely your homeowners (if you have one) policy will cover the liability insurance. Homeowners insurance might even cover the drone for theft or losses other than crashing. You would be subject to the homeowner policy deductibles. I don’t sell typical homeowners so I can’t tell you the details, but make sure you contact your homeowner’s insurance company and ask to know for sure.
Are you flying for hire? 
Commercial drone insurance is usually considered aviation insurance.
Reason I am saying aviation is because once you decide to make the transition to commercial operations, the homeowner insurance companies really do not want the risk. Aviation insurance companies already understand aircraft risk so the transition to drones is actually a little bit easier. In fact, many of the aviation insurance companies have been providing drone coverage for years but on a bigger scale. Just in the past couple of years did they start opening there “doors” to smaller more general aviation drone operators.
Commercial drone insurance coverage
1.     Liability
2.     Drone hull coverage
3.     Extra scheduled equipment
Typically, liability coverage in an aviation insurance policy will be for property damage and bodily injury.  You need to know the basic insurance definitions to understand the coverage.  The following definitions were taken from various policies and simplified as best as possible.
“Property damage”means any physical damage to “tangible” property.  This coverage does not cover the aircraft itself, any of your own property or property that you are in charge of.  This is just for the property belonging to others that was damaged by the accident.  This damage might include the loss of use of the property.   Example; houses, automobile, crops etc.
“Bodily injury” liability means the physical (bodily) injury to or the death of a person.
What does aircraft liability insurance protect you from? If you have an accident in your aircraft, the liability coverage will protect you from lawsuits from people that are injured, any of the heirs from anyone that is killed in the accident AND from anyone that has property destroyed or damaged.
But it is important to remember that the policy limit is typically the maximum the insurance company is responsible for (payments and legal defense).
Hull coverage is the protection you are buying for the actual cost of the drone and equipment attached to the drone.  Aviation insurance is generally an “agreed value” policy.  That means if you have a total loss, the claims department will pay the stated value of the “drone” on the policy (minus your deductible).  This is different from your auto insurance.  As an owner it is your decision to value the drone at a reasonable level.    Most underwriters will allow you to pick the value based on the type of drone and equipment and the age. Or they may request that you provide proof of the value (receipts etc). 

That’s the basics of the type of coverage that are available.  For  more information or with any questions, contact me, Scott Sky Smith “Name on the door”. 

Quick winter reminder – DON’T LEAVE YOUR AIRCRAFT!

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You might have read this here or in one of the magazines I write for already, but i feel it is very important to remind owners to not ignore their aircraft. 

Don’t stop exercising your aircraft…anytime of the year!  Winter is the hardest for the northern states.  But no use is bad anytime.   The worst thing you can do is just let it sit!    The following tips are a few basics to get you started.  Talk to your mechanic for more details and further recommendations.
Most mechanics will tell you the not to let your aircraft sit without running.  If you can’t fly the aircraft at least 30 minutes to an hour a month, at least ground run it.   
But don’t just run it for a couple of minutes and put it away.  You need to run it long enough to bring the oil temperature and cylinder head temperature up to the green arcs.  This will keep the upper part of the engine lubricated and free of moisture and corrosion.  It’s also important to change your oil at least every six months.  Oils can develop acids and other contaminants that are hard on the engine.  Another benefit of running the aircraft is it will allow the gyros to spin up and keep the bearings from pitting.
Fuel systems need special attention.  Make sure that you keep the fuel tanks full!  If there is very little room for air, there will be less moisture and less chance of water in the fuel system.  And for those owners with bladder tanks, it helps to keep the bladders from drying out.
What happens if you have water in your tanks?  Some mechanics rule of thumb is to add about 10 ounces of isopropyl alcohol to every 20 gallons of fuel.    Don’t get carried away with the alcohol.  More is not always better.  Too much alcohol will attack the rubber parts in the fuel system.  Why use isopropyl alcohol?  Methanol only mixes with the water and keeps it from freezing, while isopropyl combines with the water making it light enough to move through and out of the fuel system. 
Another thing you need to do is keep your batteries charged or remove them from the aircraft.  When a battery goes low it can freeze and break.  Not a problem if you live where it stays warm all year.  Of course, a dead battery it is still a problem, wherever you live. 
Many owners forget that the brakes and wheel bearings draw a tremendous amount of moisture.  If you leave an aircraft parked, the lowest most humid location is around the wheels.  If you have a tail wheel aircraft it is especially important to check these areas before flying.  Cleaning and repacking is essential on a regular basis.  The grease or lubrication is the only thing that is going to keep the moisture out of the bearings. 

Other areas that need to be worked and lubricated regularly are radios, doors and controls.  When you think about all the things that might need repaired or replaced because you didn’t “work” your aircraft, it can get pretty expensive.  In fact, it usually ends up costing more than if you just went flying!